The pair appears ready for another decline today after yesterday’s sell-off, down 0.3% to 143.75 currently. It should be noted that the price started moving towards testing the 200-day moving average (blue line) at 143.35 after that:
USD/JPY daily chart
This puts a clearer range of price action in the bigger picture, i.e. the daily ceiling at the 145.00 mark and the floor at the 200-day moving average.
In the near term, the price also fell below the 100-hour moving average – which now stands at 144.00 – but remained above the 200-hour moving average of 142.88. This leaves plenty of room to run with the near-term bias now turning more neutral. But for more downward pressure this week, keep an eye on the 200-day moving average shown above first and foremost.
With all that said, the main driver remains the bond market at the moment. So far, 10-year yields fell yesterday but rose 1 basis point to 4.012% today. Yields appear to have been stalled by the 200-day moving average at 4.06% and may remain that way until we get to the US CPI data on Thursday at least.