USD/JPY slips to a low of 106.98 on the day
The overall risk mood remains more tepid on the session, with European equities still keeping softer down by around 1.5% to 2.0% currently. Meanwhile, US futures are also staying near flat levels and looking skittish in European morning trade so far.
The dollar is also a little mixed across the board as it is keeping a little higher against the euro but is losing ground against the loonie and aussie at the moment.
For USD/JPY, price is also stretching a little lower as we see sellers start to close in on a test of the 100-hour MA (red line) @ 106.96.
Keep above that and the near-term bias stays more bullish but break below and the bias will turn more neutral instead, paving the way for sellers to test the 50.0 retracement level @ 106.88 and the 200-hour MA (blue line) @ 106.76 next.
It is hard to extrapolate much from the risk mood so far today, and major currencies are also showing little poise in general to break out in a meaningful way – for now at least.
As such, pay attention to the technical levels for now as they may offer some insight into price action and how the market is going to progress later in the day.