USD/JPY testing MA supporting cluster, firm above 113.50

USD/JPY rose from 113.24 to 113.69 the high overnight in risk-on NY and, currently, USD/JPY is trading at 113.57, up 0.02% on the day, having posted a daily high at 113.59 and low at 113.49.

The mood for risk continues in Tokyo and the yen is struggling in this environment ahead of the FOMC's expected rate hike later this week. The VIX closing at its lowest in a month helped to encourage investors into Wall Street's benchmarks overnight for the best close in stocks since 1992. 

Forex today: VIX closing the lowest in a month ahead of FOMC this week, dollar slides

US yields

The 10-year note yield was falling intraday to 2.36% before regaining the 2.38% level, although the 30-year note yield closed the day at 2.77%, below the previous 2.78%. 

USD/JPY levels

Valeria Bednarik, chief analysts at FXStreet explained that the 4 hours chart shows that the price has held above its 100 and 200 SMAs far below the current level, while technical indicators are turning back north after correcting extreme overbought conditions, all of which indicates that selling interest remains well-limited around the pair. "A fresh multi-week high was set at 113.65, now the immediate resistance and the level to surpass to open doors for a test of the critical long-term resistance at 114.40." Valeria added.