Technical Analysis

USD/JPY inches lower as risk mood softens

USD/JPY falls back under both key hourly moving averages


The pair just hit a session low of 108.28 as sellers managed to seize near-term control by driving price below both the 100-hour MA (red line) and the 200-hour MA (blue line).

There is now mild support around 108.31 but a further break lower will see price start moving back towards a retest of the 108.00 handle again. The move to the downside comes amid a shift in the risk mood to being slightly softer on the session.

US equity futures are down by 0.3% to session lows now while Treasury yields are also weighed down with 10-year yields down by nearly 2 bps to 2.125%. There’s no clear cut cause for the drop in sentiment but global trade tensions and the situation in Hong Kong – driving the Hang Seng down by nearly 2% – isn’t helping to say the least.

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