USD/JPY tests the 100-hour moving average
With Tokyo markets closed, Treasury yields only crept higher at the start of European trading and that has helped to put a bit of pressure in the yen as we begin the session. USD/JPY inched up from around 111.65 earlier to hit a high of 111.78, where buyers ran into near-term resistance from the 100-hour MA (red line).
As it stands, sellers are still in near-term control of the pair but downside remains limited by support from the 200-day MA, which sits at 111.51 today. That will be the key level that sellers must break to extend a move back to the downside.
Meanwhile, for buyers, it's all about climbing back above the key hourly moving averages with the 200-hour MA (blue line) @ 111.86 also eyed in order to test notable offers around the 112.00 handle next.
The pair has braved through earnings season without much of a hitch as it continues to sit a step or two below the 112.00 handle. There will still be notable releases this week with Alphabet coming up today before Apple reports tomorrow.
Expect the latter to have a significant say on risk sentiment in the day ahead. As for USD/JPY levels now, watch out for the key near-term levels highlighted above. But for a major upside extension, price has to climb back above last week's high of 112.40 first. On the flip side, a daily close below the 200-day moving average will be the first step for sellers to chase a further downside move from hereon.
