USD/JPY touches a high of 110.32 on the day
Risk sentiment is starting to improve ahead of European trading, with Japanese stocks paring losses on the day to be virtually flat now. Meanwhile, US 10-year yields are up by almost 1 bps to 2.835% and put together that is helping to give USD/JPY a bit of a nudge higher on the day.
Sellers made an attempt to move below the 200-hour MA (blue line) and the 110.00 handle earlier but failed to sustain any firm break of the key levels - and that keeps near-term sentiment bullish for the time being.
The other key level to watch out for in the pair is the 200-day MA @ 110.20. Although yesterday's close was above that, it's not really a firm break as the gains overnight eroded when US equities turned sour and ended the day at the lows.
The slightly better performance in Chinese stocks so far is helping to ease some nerves in Asia, but let's see how things will develop when they return from the break at the top of the hour.
As for USD/JPY, topside levels remain capped by offers near 110.50 and resistance is seen at yesterday's high at 110.49. And the downside levels are the ones mentioned above being the 200-hour MA @ 110.04 and the 110.00 figure level - where there are also large expiries rolling off today, so it may be an anchor to price action today.