USD/JPY falls to session lows as yen pulls further ahead on the day

USD/JPY touches a low of 113.67 on the day

The dollar and the yen are among the best performing currencies today but it is the latter that is leading the way by a margin at the moment. Risk off sentiment continues to dominate the market landscape and the yen is ramping up pressure across the major currencies bloc at the moment.

USD/JPY failed to break above the 114.00 handle and that for now will be the key resistance level for the pair in a bid to move higher. Key support is now seen at 113.17 from the July high.

It's all about risk in trading so far in the European session. The aussie and kiwi are the two currencies being battered heavily while the yen, swissie, and dollar lead gains. 10-year Treasury yields are down by 3 bps to 3.053% and that is also helping to keep the yen bid on the day too.

In my view, the real threat to any further upside in yen pairs is if Treasury yields slip further from current levels. If 10-year yields dip back below 3%, then that will derail the upside momentum seen in USD/JPY since the start of September.

But for now, stay above the 113.17 level and there is still a strong conviction for the upside move to continue. The 100-hour MA comes in at 113.44 so that will also be a key level to eye for. The 200-hour MA sits at 113.05 at the moment. As long as price holds above both of that, the near-term price bias remains more bullish still.

via : foexlive