Trend line at 110.945
The USDJPY has dipped toward trend line support on the hourly chart at 110.945. Below that the 100 hour MA is rising and currently at 110.852. The 38.2% is around that MA level at 110.827. The 200 hour MA is at 110.73. The current price is at 111.02. The low for the day in the Asian session reached 110.929.
If support holds at the trend line (and so far buyers are leaning), the 111.17 is a topside trend line. A move above will look toward the most recent August highs at 111.31 from August 15 and the August 24 high at 111.48.
The USDJPY is lower despite higher stocks and higher yields in the US. The S&P reached a record on Friday and is up about 12 points. US 10 year yield is up 2.1 bps now. Typically, if they are higher, the USDJPY is higher too. Fed's Powell on Friday confirmed gradual rate rises. There were other Fed officials who raised the red flag on the yield curve flattening last week (Bostic and Bullard). A slower or pausing Fed could help to weaken the USD. In the short term, the Fed is largely expected to raise rates in September 26th.
