The pair falls to a low of 110.67, as buyers fail to keep the price above the 100-hour MA
The 100-hour MA was a battleground today between buyers and sellers but ultimately, it seems that sellers are winning over now and USD/JPY may be heading back to the mid-to-low 110 levels once again.
The dollar remains fragile as talks of US government shutdown casts a shadow, and that will go on until US tomorrow (19 January for the US - but it will likely go on until the night so for some timezones we'll see a decision on Saturday).
Buyers needed to stay above the 100-hour MA for a further test of the 200-hour MA to regain control but it looks like there is further downside for the pair yet still.
Despite the rise in US yields, correlation with USD/JPY continues to break down further as I highlighted here.
