It's a bit of a mixed picture in markets today as bond yields are holding steadier, while the dollar is actually advancing slightly despite equities keeping higher in European trading. USD/JPY is up 0.3% to 134.80 at the moment but is facing some near-term resistance from its 100-hour moving average:
Since the end of last week, buyers have struggled to seize back near-term control of the pair with the 200-hour moving average (blue line) helping to limit gains just above 135.00. Right now, we're seeing a first test at the 100-hour moving average before that level comes back into play - seen at 135.33 currently.
Towards the downside, there are bids around 134.00 as well as minor support at 133.50 from last week's low to watch out for.
But for now, this continues to indicate more of a choppy market mood and some added pushing and pulling. Why is that the case? I outlined an argument earlier here that the US CPI data essentially didn't do as much as it would and market were probably hoping for more of a surprise - on whichever direction.
So far today, the dollar is regaining some poise after a recovery bounce in US trading yesterday with EUR/USD also sitting at the lows around 1.0930 (large option expiries at 1.0925) and AUD/USD continuing to be rejected at its 100-day moving average closer to 0.6800.
In terms of data, there is the US PPI figures and unemployment claims to be wary of later today.