Despite the slightly more positive risk tilt to start the day, USD/JPY isn't doing a whole lot as price action continues to center around the key hourly moving averages.
That area is seen at around 109.83-85 currently with topside momentum further limited around 110.00 and downside momentum limited by support around 109.60-75 as well.
As such, without any firm risk tilt, the pair remains a big caught and is lacking a real spark to come to life since mid-Thursday trading last week.
The key in the day ahead is to pay attention to the risk mood but with US markets closed, perhaps investors would be less inclined to chase any big shifts in risk for the time being.
Therefore, the pair could very well still be stuck around these levels but just be mindful of a technical push that could precipitate a near-term breakout in the pair.
For buyers, they need to work out a way to hold above the key hourly moving averages and break resistance around 110.00-10 with further resistance seen at 110.25-30.
For sellers, the key would be to break below the key hourly moving averages and the support region around 109.60-75. That will help to build momentum towards 109.50 and perhaps the 109.00 level if there are any headlines to support such a break.