USD/JPY off highs, moving sideways around 110.80

• USD/JPY remains steady despite US strength against majors.
• Pair moving in ranges up for the day but far from the highs.

The USD/JPY pair moved off highs during the US session and it has been moving in a range between 110.75 and 110.95, marginally higher for the day. Earlier today peaked at 111.14, the highest level since Friday but then pulled back.

The move to the upside was boosted by an improvement in risk appetite across financial markets. Also supporting the pair were US yields. The 10-year rose to 2.90%, before making a pullback.

The US dollar is rising for the second day in-a-row versus the yen and is back at the level it closed last week. The rally started after hitting a 1-month low at 110.09 yesterday. The negative tone eased but the bias still points to the downside, particularly as price holds below 111.30 (20-day moving average).

USD/JPY Technical levels

To the downside, support levels might be seen at 110.75 (US session low), 110.55 (Aug 14 low) and 110.30. On the flip side, resistance could be located at 110.95, followed by 111.15/20 (Aug 9, 10 & 14 high) and 111.50.