USD/JPY buyers have much work to do in order to recapture near-term bias

USD/JPY H1 15-11

The pair is sitting higher on the day as the yen is weaker following renewed hopes of a trade deal from Kudlow's remarks earlier. The bounce also comes after sellers ran into support around 108.27 in overnight trading.

Despite a slight nudge higher, sellers remain in near-term control as price holds under both key hourly moving averages.

In that sense, price action suggests that markets are a tad more positive on trade talks but not to the extent to fuel a significant shift in the risk mood just yet.

As such, buyers still have much work to do if they are to try and take away near-term control from sellers in the coming sessions.

The first key resistance point is the support-turned-resistance at 108.65 before the key hourly moving averages around 108.88-98 come into play. Those will be the two key levels to watch out for in the event buyers extend the move earlier today.

But as mentioned earlier, markets could yet err on the side of caution if there are no follow-up headlines to bolster the positive narrative from Kudlow.

A case of easy come, easy go may just reinvigorate sellers to test support at 108.27 and then the 108.00 handle next as they continue to hold near-term control.