The pair continues to sit around 110.20-25 to start the session, the highest levels since 23 May 2019. The trading range (15 pips) today still leaves a lot to be desired and traders will be looking towards the risk mood for more clues towards the end of the week.
US stocks rallied to fresh record highs yesterday and that is helping with keeping the pair above the 110.00 level for the time being.
However, any further extension remains hard to come by with buyers still seemingly cautious after a solid bounce off support close to 108.00 at the start of the month.
Looking towards the upside, further resistance is seen closer to 110.50 with the 22 May 2019 high @ 110.63 also a level to be mindful about. Meanwhile, the threat for buyers will be if price falls back below 109.60-70 and settles back into the previous range.
As long as buyers can keep above that - and more incentive above 110.00 since the 100-hour moving average is close by - then it could open up a new range for the pair moving forward between 110.00 to 112.00 perhaps.
All that said, I still reckon traders and investors are still seeking for some new theme in markets after the US-China trade deal signing. Without any clear focus or direction, yen pairs may have to look towards the equities market for some form of guidance.
In that regard, equities appear to still be holding up with the absence of any negative catalysts but just be mindful of profit-taking activity or any retracement since US stocks are keeping at record highs during earnings season.