Having found bids around 108.54 earlier today, the USD/JPY pair is now attempting a break above the 200-hour MA located at 109.77.
The 10-year Italian bond yield fell more than 20 basis points on Wednesday on hopes the populist parties will be able to form a government and avoid fresh elections. Further, the Dow Jones Industrial Average rose 300 points.
Still, the anti-risk Yen remained relatively resilient. The USD/JPY pair failed to close above 109.00 yesterday and fell back to 108.54 in early Asia, possibly on renewed US-China trade tensions.
The currency pair risks bearish reversal and could scale the 109.00 mark in a convincing manner only if the US wage growth numbers, due on Friday, blow past expectations. As for today, the spot remains at the mercy of the broader market sentiment.
USD/JPY Technical Levels
The immediate resistance is seen at 108.91 (session high), 109.22 (4-hour 200MA), and 110.00 (psychological hurdle). On the other hand, support is lined up at 108.35 (50-day MA), 108.14 (100-day MA) and 108.00 (zero level).