The JPY has gained 0.34% against the USD in today's trading so far but there are some support levels to hold up the pair
Right now, on the daily chart, the pair is threatening to break out of the wedge that I mentioned earlier in the week here.
But sitting close by there's support in terms of the 100-day MA at 112.24 and so far that's helping to keep the pair supported in Asian trading today. The low posted on the day is 112.17 though.
Adding to that, there's also a bit of a stronger support level as we head closer to the 112.00 level - more notable is at 112.07 where we see on previous occasions the pair bounced off that level in December and early January.
While USD/JPY has been favouring the downside over the last two days, this could be where buyers may find added conviction to come back in and regain control of the pair. Adding further support to the pair is the fact that US 10-year yields have shot up to 2.55% yesterday - and the move in USD/JPY over the last two days represents a disconnect in the correlation that the two has had over recent times.
