USD/JPY to break 107.00 on sustained technical gains on Wall Street?

• USD/JPY tracking investors risk apatite.
• Dow on the verge of a break above 10-D SMA?
• USD/JPY reverses despite trade war angst.

JPY was strong leading into the NY shift before Wall Street showed what it is made of, uber-confident investors, with the Dow paring its 500-point opening tumble by more than half, despite China's retaliation, signalling a tit-for-tat approach.

US ISM Non-Manufacturing moderates in March from a high level - Wells Fargo

China’s Ministry of Commerce said tariffs would affect $50 billion of U.S. goods as they plan to impose tariffs of up to 25% on 106 American products after when the Trump administration on Tuesday gave details on the $50 billion of Chinese goods that it plans to hit with 25% tariffs unless Beijing makes major trade and investment concessions in a reasonable time frame. As the tensions escalate, so will uncertainty, a positive for the yen.

Yen turnaround as stocks turn bid

However, consumer-related stocks on Wall Street have rallied and  helped to reduce some of the stock market's early decline on such trade-war fears today and USD/JPY has rallied back to the 106.60/70 resistance line with US 10-yr yields +0.33% on the day so far, recovering from the lows of the 2.7461% - 2.7844% range. The Dow is now testing the resilience of the 10-D SMA resistance, a break of which will be for the first time since 20th March that the index will have traded above it. 

USD/JPY levels

A move through the 107 handle would target the 107.90 area ahead of the 110.48 February highs. 105.79 and the daily tenkan line is a key support ahead of 104.20 gives way to a downside measured target of 102.58, guarding a run to 101.19/99.00 as the June-to-November 2016 lows ahead of 100.70/99.00.