USD/JPY: bulls in control looking for a break of the 10-hr SMA

• USD/JPY bulls taking control in the open.
• USD/JPY traders to monitor yields and Wall Street. 

USD/JPY has been bid in the Tokyo open so far with a small climb from 109.12 to 109.25. Currently, USD/JPY is trading at 109.29, down -0.27% on the day, having posted a daily high at 109.65 and low at 109.12.

USD/JPY was rangebound overnight and bulls were unable to really capitalise on Wall Street's recovery nor higher US yields.

Watching Wall Street

Most price movements were in the yen and through the crosses. From here, markets will continue to monitor stocks and in bond yields, while eyes the109.70 high before a test of the 110.00 handle again should Wall Street continue to recover from this week's rout.

USD/JPY levels

Valeria Bednarik, chief analyst at FXStree explained that from a technical point of view, the 4 hours chart shows that indicators have continued recovering from negative territory, with the RSI currently entering bullish territory, but the Momentum still holding below 100: 

"In the same chart, the pair remains below a bearish 100 SMA, now offering a dynamic resistance around 109.80, now battling to surpass a Fibonacci level, the 23.6% retracement of its latest decline at 109.50. A break beyond the mentioned 100 SMA should offer a more constructive outlook, opening doors for an advance up to 110.47, last week's high," Valeria added.