USD/JPY pushes to a session high of 107.79 currently
The pair is having a very polarising start to the week, tracking lower yesterday amid a weaker dollar before reversing course in trading today to push just above the highs yesterday and close to a test of the 100-day MA (red line) @ 107.81 currently.
The move higher comes on the back of a stronger dollar, with the yen struggling to benefit from the softer risk mood in the market in European trading thus far.
So far, the pair is still largely caught in between levels around 107.00 to 108.00 with Treasury yields falling back in place after false breakout at the beginning of June.
But recent upside momentum has seen a lower ceiling, with the 100-day MA proving to be where sellers are making their stand. That will be a key technical level to watch today as well with price action now closing in on the level.
Generally speaking, USD/JPY remains very much a "dead" pair in my view considering that it actually largely mirrors the movement in Treasury yields - which isn't really a good or strong indicator of market sentiment these days.
But a break of key technical levels could spark some momentum flow in the pair so that might be one to watch out with consideration to other yen pairs in general.
GBP/JPY is one to watch with upside being limited by its own 100-day moving average (now @ 134.12) as of late, but is starting to track above that in trading today.
The pair is also seen holding above its 100-hour moving average @ 134.11 so buyers are hoping to keep a more solid upside momentum there.
