It's been a quick recovery in yen pairs over this week
USD/JPY just touched session highs of 107.90 on the day, as the yen is getting hammered on the day. There's not much news on the day apart from comments by Japan's FX currency chief Asakawa earlier today - though they are nothing new.
Equities in general are doing fine, with the Nikkei up almost 1% so that's helping a little.
At the moment, USD/JPY is running into some resistance at the 61.8 retracement level @ 107.87.
Looking at GBP/JPY, buyers are also running into some resistance at the 100-day MA (red line). For now, these levels will be the key ones for buyers to break above to the next leg - and may stall the upside move today for a bit.
Diving deeper into near-term charts, USD/JPY and EUR/JPY have both broken above the 200-hour MA today. And that keeps sentiment bullish for the time being, and would feed buyers with more incentive for a move to the upside.
Meanwhile, the other question this week is are we starting to see a return back to "normality"? US yields are a tick higher today, and that again is helping support USD/JPY in a bid higher.
If we truly are starting to see some realignment, then the FX market has a long way to go in catching up with the bond market after the recent breakdown in correlation.
