The dollar is seeing some light bids to start the session, building on the rebound momentum from yesterday. In particular, USD/JPY saw a solid push back above 135.00 and looking at the near-term chart, there was also a break back above its 100-hour moving average (red line) in US trading.
The slight dip in Asia earlier today was defended at the key level and that sees price action now caught in between both its key hourly moving averages, with buyers now pushing for a test of the 200-hour moving average (blue line) at 137.43.
Keep below that and the near-term bias stays more neutral but break above and the bias will turn more bullish again. That will be a big win for buyers after the recent selling pressure with it coming alongside a hold in the bond market as noted here.
Above the key near-term level above, there is the 23.6 Fib retracement lower of the downswing since late October at 137.94 next before a potential rebound back towards 140.00.
Those will be the big levels to watch in terms of gauging the appetite for the dollar bounce to start the new week.
