It is all about the dollar in the currencies space today, as even the softer risk mood isn't quite stopping the greenback from gaining against the yen.
The debate I pointed out earlier in the week is that the wave of dollar strength largely depends on how USD/JPY plays out but both currencies should stand to gain if the economic situation remains dire and the risk-off mood persists into the start of April.
For now, with price breaking above the 100-hour MA (red line) yesterday after buyers defended yet another test of the 107.00 handle, we are seeing the dollar start to gain some real traction to chase a further upside move.
And in the broader scheme of things, this bodes well for dollar strength if this keeps up.
Looking at near-term levels, USD/JPY has room to roam towards resistance near 108.75 with the 200-hour MA (blue line) @ 108.81 also an important level to watch.
However, I would argue that the big picture remains the key technical spot to watch:
Notably, price is now challenging a break above the 200-day MA (blue line) @ 108.33 and a daily close above that will be a good platform for buyers to build on.
Just above that is the 100-day MA (red line) @ 108.97 and that will be another key line in the sand for dollar bulls to explore in chasing further upside momentum.
Considering the dollar strength in this risk-off mood, just be mindful that the Fed may step in again to try and quell the situation so that's a key risk to watch out for today.