USD / JPY maintains slight rebound to trade around 104.80 levels today
The pair is currently hovering around its 100 hour moving average @ 104.83, but I would say it’s not quite a key level at the moment as price action hovers between a few other key levels ahead of the weekend.
It should be noted that the slight rebound in the second half of the week comes after sellers drove price towards the 100 day moving average (red line) and buyers defended that level.
This now puts the focus back on 105.00 as a key line in the sand limiting the downside, with large expirations at 104.95-00 rolling today as well as the 200 hour moving average @ 105.03 currently.
As such, buyers need to break through this boundary in order to reestablish new bullish momentum by trying to target the 200 day moving average (blue line) @ 105.53.
Even though the pair does tend to follow risk sentiment at times, I would say the dollar side of the equation is the key factor at play at the moment.
The risk looks lukewarm with the long weekend in the center of attention and if the dollar gains ground later in the day it could push USD / JPY to test resistance levels closer to the 105 level. , 00 in future sessions.
Another key area to watch is the bond market as well, but yields appear to be consolidating for the most part, so there may not be much to that today.
Regarding the downward momentum of the USD / JPY, sellers should try to break below the 100 day moving average @ 104.39 to extend another lower leg into the day (s) to come.