Price climbs back towards a test of the 100-hour MA now
The pair hit a double bottom in late Asian trading earlier just below 112.60 and bounced a little thereafter. But China's comments on trade here is helping to lift the mood in European trading so far and risk assets are recovering a little on the day as a result.
US 10-year Treasury yields are now flat on the day at 2.91% and that's helping to ease downside pressure on yen pairs seen earlier in the day. Meanwhile, S&P 500 futures have also pared some of its earlier losses to be down by just 0.7% now after having dipped by about 1.4% at the start of the session.
There is still a sense of fragility in risk but with fears beginning to abate, it's at least not exacerbating a further downfall in risk assets on the day. For USD/JPY, price is now working its way back towards a test of the 100-hour MA (red line). The swing region resistance around 113.20-25 will prove crucial alongside the key hourly moving average in limiting any near-term upside move for now. There's also the 200-hour MA (blue line) @ 113.40 for added resistance.
Only a break above those levels will there be a convincing case for further upside towards 113.60-80. Otherwise, expect the pair to be pinned near 113.00 as near-term bias continues to favour sellers.
