Choppy trading continues for USD/JPY during the week
10-year Treasury yields are now down by “just” 7 bps to 0.73% after having hit a low of 0.63% earlier in the session, while US futures have also pared some of its decline as S&P 500 futures are now down by “just” 1.1% after a bigger fall of 3% earlier.
The shift in momentum is helping to see yen crosses climb higher on the day with USD/JPY rising back above 105.00 to 105.30 currently.
The low earlier touched 104.10 as price fell below the near-term trendline support and the 100-hour MA (red line) but buyers managed to claw their way back above those key near-term levels to establish a more neutral near-term bias.
Resistance around 105.75-90 will be key to watch in the sessions ahead as the market continues to grasp at the current situation i.e. coordinated fiscal stimulus vs ongoing coronavirus outbreak across the globe.