USD/JPY: strong Tokyo bid within bearish territory below 109.00

USD/JPY is currently trading with a high of 108.22 and a low of 107.86 while the Yen is pressured across the board with a slight bid in the greenback.

USD/JPY has been a volatile trade at the start of the week, recovering from lows of 107.63 and amid profit taking, demand has seen the major reach the 50 sma on the hourly chart at 108.27. With a lack of fundamental drivers, the Yen has been subject to a sell-off in an improved risk environment and a come back in the commodities sector, while under pinning Yen weakness, BOJ's Governor Kuroda recently said that the Central Bank is monitoring exchange levels, and that they will add further stimulus without hesitation if needed.

USD/JPY levels

While the RSI has picked up the 4hr sticks and out of oversold territory, momentum has also gathered in the recovery process. 109.00 is the key psychological level of target and until that is breached, the downside is still to play for. 110.00 is the next target to the upside, where the 10 dma stands ahead of the 20 dma at 111.22.