After yesterday's selloff, it looks poised for further decline today, currently down 0.3% to 143.75. Of note, price is starting to move towards the next test of his 200-day moving average (blue line) at 143.35.
USD/JPY daily chart
This makes the range of price movements clear in the big picture, with a daily ceiling at the 145.00 mark and a floor at the 200-day moving average.
In the short term, the price is below the 100-hour moving average (currently 144.00) but above the 200-hour moving average of 142.88. Now that the short-term bias has switched to a more neutral direction, there is a lot of room for action. However, if we see further downside pressure this week, keep an eye on the 200-day moving average highlighted above first and foremost.
That said, the primary driver at the moment remains the bond market. So far, the 10-year Treasury yield rose 1bps to 4.012% today after falling yesterday. Yields appear to be capped at the 200-day moving average of 4.06% and are likely to remain there at least until the release of U.S. CPI data on Thursday.
