The pair threatened a break below 130.00 in Asia trading yesterday before the dollar took over in European and US trading, with a late retreat in risk sentiment also helping the greenback find steadier footing amid some minor pushback. But in the case of USD/JPY, it was all about keeping above the critical 130.00 mark and buyers have definitely done that.
That is not to say that the downside pressure is over though. Sellers might have come close and failed but they are still very much in control after having stuck with a move from 150.00 since October trading.
For now, sellers must try and break back below 130.00 to keep that run going with the 100-hour moving average, seen at 131.77 currently, being a near-term level to watch for any shift in the technical bias.
Things are starting off slowly today after the flurry of bids in the dollar but let’s see if the flows will continue to be the story as we get towards European trading later.