USD/JPY is back up to 107.85 as US futures see 1% gains on the day now
The yen is losing ground on the day after a solid run higher as we are seeing the risk mood turn around a little to start European trading. USD/JPY is back up to 107.85 after having been as low as 107.12 in Asia Pacific trading, with US futures now posting gains of 1%.
From a technical perspective, USD/JPY is challenging daily support from the 38.2 retracement level @ 107.69 with bids around the 107.00 handle also in play.
However, the key is to watch the 200-day MA (blue line) @ 108.33. As long as price stays below that, the downside momentum in the pair remains intact.
Right now, the risk mood looks to be turning for the better but any return back to the upside in the pair needs to hold a break above the 200-day MA. Otherwise, the brief optimism here should see more selling pressures to drive it back down.
