USD/JPY price action now centers around the key hourly moving averages
The pair has been trading tepidly around 109.55 to 110.00 throughout the week – barring a temporary peek above the figure level – as traders continue to try and sort out the market mood with regards to the coronavirus outbreak situation.
The market is generally building hope that the situation may not turn worse but some doubts are still lingering, and that is limiting any upside potential in yen pairs this week. The fact that bond traders are also hinting at that is not helping with a break.
As such, USD/JPY now finds itself caught in the middle of both key hourly moving averages as the two levels narrow around 109.76 and 109.84.
However, any upside break still needs to breach the 110.00 level and this week’s high of 110.13. Further ahead, there is resistance around 110.25-30 next as well.
Meanwhile, any downside push needs to breach the support region around 109.55-70 for sellers to feel more comfortable in chasing a move back towards 109.00 potentially.
Therefore, USD/JPY is basically in need of a spark right now – either technically or fundamentally, to give traders a nudge to chase a move in one direction or another.
For now, the more mixed and tepid risk mood (equities slightly higher but bond yields lower) is not helping currency traders ahead of the weekend. Let’s see if things will change in the hours ahead and as we look towards North American trading later.