USD/JPY: Asia follows Wall Street and leaves Yen exposed

USD/JPY is currently trading at 110.06 with a high of 110.19 and a low of 109.96.

Asia is up in Tokyo following Wall Street's recovery fuelled by U.S. home sales data enabling the greenback to rally and sending USD/JPY to the 110 handle with shallow scores on that level.

Nikkei is up 1.5% at time of writing and Asia also seen a bid in USD/JPY, taking the Yen down to 110.19 the high. At time of writing, however, the Yen is paring the bulk of its Tokyo losses.

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USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the upward momentum is limited in the 4hr chart. "The pair needs to break decisively above the 110.60 region to be able to extend its rally up to 112.00 during the upcoming days."

Meanwhile, the price is stalling around the 55 day ma still at 110.17 with offers at 110.19 so far capping the bulls having broken the 50 dma at 109.85 hat now come sin as an area of support. We are neutral territory between 108.85 and 111.90. This level is key and a break would confirm the market has based.