USD/JPY: bulls move to test the key Tenkan resistance level

• USD/JPY: bulls take back control and price moves up to key resistance.
• USD/JPY: a turn in sentiment, markets shrug off Iran risk. 

USD/JPY is higher in Tokyo, catching a bid up to the key resistance and Tenkan level that has been a key player in the US jobs data last week. Currently, USD/JPY is trading at 109.35, up 0.21% on the day, having posted a daily high at 109.39 and low at 109.00.

Forex today: dollar bid on Powell's warnings, Iran deal gets axed by Trump

Overnight, the dollar was bid. but was its northerly trajectory was interrupted by the risk-off sentiment surrounding Trump's, will he or won't he, axe the Iran deal. Once Trump made the announcements, the yen firmed and the pair could not get off the floor from just above the 109 handle. Then, a turn in sentiment favoured the upside and Tokyo has just extended the bid on the back of a positive close on Wall Street. Meanwhile, US 10yr treasury yield climbed from 2.95% to 2.98% while the 2yr yields climbed from 2.50% to 2.51%. Fed fund futures yields continued to predict 2 rate hikes by year-end.

USD/JPY levels

The daily Tenkan at 109.35 caps any upside while focus stays on the 100-D SMA to protect against a bearish run.

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart shows that the pair remains within a well-limited range since last Thursday hovering around the 109.00 figure: "The chart presents a neutral stance, with technical indicators now heading lower within neutral territory, although the price continues developing above a bullish 100 SMA and a daily ascendant trend line coming from early April, both making of the 108.50 area an immediate support."

USDJPY: The short term momentum indicators are neutral