In response to a rise in US Treasury yields, the USD/JPY reverses half of its prior loss.
As the bounce from the 50-DMA continues, the pair reclaims 110.00.
In a risk-on environment, bulls are expected to test the 21-DMA at 110.54 once more.
In the American session, the USD/JPY has reclaimed the 110.00 level, correcting more than half of Thursday’s loss on an upbeat market attitude.
The shift in risk sentiment has helped to save US market returns, pushing the USD/JPY pair to a high of 110.26.
The major is currently up 0.38 percent on the day, trading at 110.20 after hitting a daily low of 109.73.
From a short-term technical standpoint, the spot has recovered ground above the 50-day moving average (DMA) at 109.80.
This is in accordance with the 14-day Relative Strength Index (RSI) rising to 48.43, moving closer to the center line.
However, with the momentum indicator still below 50, a test of the 21-day moving average upside hurdle at 110.54 is unlikely.
A daily close below the 50-DMA key support, on the other hand, might revive the decline, opening floors towards the psychological level of 109.50.
The increasing 100-day moving average (100-DMA) appears to be the line in the sand for USD/JPY buyers./n
