USD/JPY near resistance levels, what comes next

The pair stays higher for the moment, after the yen weakens over the weekend, but the movement remains limited by 200 MAs for now. This prevents buyers from assuming short-term market control.

It should also be noted that there are around 108.00 waiting positions that hamper price action and keep it limited, with the expiration of options of about $ 3.4 billion that expire on Wednesday and are also set to play a role in the development of things in the next few sessions.

In addition, additional resistance lies at 108.30-40.

But for now, the markets are still passive in anticipation of some key decisions by central banks, so we may not see a clear direction until then. The yen will be generally dominated by trade talks above all else, so watch bond yields.

In-depth analysis

They are close to their 0% change for the session, but 2-year yield is 1.3% up to 1.831%. This will also be the scene for a possible yen movement, as markets focus on the ECB.

The key pairing level is 106.78. If the price begins to fall below it, it may be a free fall to the bottom of a flash crash in January.

 Trader Aleksandar Kumanov

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