USD/JPY touches a high of 112.36 on the day
And other yen pairs also touched fresh highs for the session with EUR/JPY moving to 128.18 and GBP/JPY to 145.04 briefly moments ago. The turnaround here comes as E-minis are now trading up by 0.6% to session highs as well and European equities are mostly in the green right now. Adding to the improved risk sentiment, US Treasury yields are also up on the day with 10-year yields up by 1.7 bps to 3.121%.
That has helped to lift USD/JPY to test the 200-hour MA (blue line) @ 112.34. For sellers, it is vital to hold below that level to maintain the near-term bearish bias. The 100-hour MA (red line) doesn’t sit too far away but for buyers to confirm a move higher they would have to break above the 18 October high @ 112.73.
Despite the positive tones seen here, sentiment remains fragile and things can quickly turn as we saw what happened yesterday. Will today be very much a repeat? We’ll have to wait for US equity traders to confirm that.