USD/JPY nudges higher to start the session as buyers wrestle back near-term control

USD/JPY advances as the risk tone keeps more positive

The pair now climbs to a session high of 106.20, moving close to a minor near-term resistance from the 20 August high @ 106.22.
Of note, buyers have now managed to move back above the 200-hour MA (blue line) @ 106.04 and that is sets the near-term bias to being more bullish for now.
Yen pairs are seeing a bit of a nudge higher across the board to start the session as the currency keeps weaker with Treasury yields pushing higher. This comes amid the more positive risk tone in the market to start the day.
10-year yields are up by nearly 2 bps to 0.674% and that is keeping the yen pressured.
Back to USD/JPY, the 106.22 level will be the first key resistance point to watch and beyond that buyers can look towards the 106.50-60 region before potentially looking at another retest of the 107.00 handle once again.
As for sellers, the first key step is to nudge price back under 106.00 and below the 200-hour MA to regain some near-term control.
The 100-hour MA (red line) was a key level that limited the downside move yesterday so that will be one to watch should price action shift back lower in the sessions ahead.

Source: Technical analysis

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