USD/JPY suggests that it may be tough for the yen to post further gains from here
Strong support and large expiries at the 110.50 level
There is a lot of interest at the 110.50 level for USD/JPY and it is not one that should be taken lightly. The February high @ 110.48 provides additional support to that but so far in all the moves lower in August we have yet to see a daily close below the 110.50 level.
That will be a key thing to watch out for ahead of US trading later as bids around the 110.50 level will keep traders on their toes. The Turkish lira situation also appears to be calming down a bit as Turkey is reportedly saying that they are close to releasing US pastor Brunson but so far the US has been unwilling to offer more to secure his release.
That has seen the lira now strengthen back to 6.10 against the dollar after having earlier touched 6.34 levels.
As for USD/JPY, watch out for that 110.50 level as mentioned above as there are also large expiries sitting there that will help anchor price around said level unless there is a major catalyst to break away from it.