USD/JPY supported at 107 amid risk-on trade

• The US stock market sentiment remains upbeat as investors keep their eyes on corporate earnings which are rather favorable for yen bears.
• The US dollar is stabilizing since Tuesday and is now trading in an 89.50/89.60 tight range struggling to find a direction.

The USD/JPY is trading at around 107.23 up 0.21% on Wednesday after bulls found a floor on Tuesday at the 107 handle. 

Risk appetite is prevailing on Wall Street as the earnings season is being cheered by investors who keep buying American stocks on blockbuster earnings. The worries about the tensions in Syria, the diplomatic tensions with Russa, the trade war with China and now the tensions yet again between Tel-Aviv and Tehran are all forgotten, for the time being. The yen is a safe-haven asset and in times of geopolitical turmoil investors buy the Japanese currency.

The US dollar bulls are trying to get out of the woods as in the last two days they managed to stabilize the buck which is now trading in a tight 89.50-89.60 range after the index saw a steep decline since April 6. 

Coming up next in the US session the speech of Fed William Dudley who will discuss monetary policy issues as well as giving his take on the economic outlook. He will be speaking at 19:15 GMT at the City University of New York's Lehman College. 

USD/JPY 4-hour chart

The pair is mainly trading sideways with a bullish bias. Main supports lie at 106.61 and 105.65 swing lows while on the other side of the equation the resistance levels are priced in at 107.37 as immediate resistance and at 107.79 swing high.