USD/JPY down 0.2% to 109.30 levels currently
The sharp move lower on Friday came as Treasury yields and the dollar sank and with yields keeping lower once again today, the downside momentum in the pair is staying the course as European traders enter the fray.
USD/JPY is keeping at the lows for the day around 109.33 now with the shove lower yesterday breaking below the 100-day moving average (red line).
That sees buyers relinquish control with sellers also seizing back the momentum when viewing the near-term chart i.e. price now below both key hourly moving averages.
So, what’s next for the pair?
That could keep more downside pressure on the pair ahead of daily support closer to 109.00. Other key support levels to note is the trendline from the April to August lows, now seen @ 108.87 and the August low itself @ 108.72.
As things stand, we’re getting into a bit of risk aversion territory to start the week as delta variant concerns ramp up. Headline risks are going to be paramount as such, so just be wary of that when navigating through the week.
The US retail sales report tomorrow is going to be a big one to watch in that regard.
