USD/JPY touches a low of 109.92 as risk tones turn sour
Price is now back under the 110.00 handle as US equity futures are extending their losses on the day. Nasdaq futures are down by 1.1% now as Treasury yields also turn flat as we start gearing towards early trades in the US.
The turn of the tide was triggered by speculation that China is to retaliate against Huawei measures by taking action against related suppliers and also Apple. That initially saw US equity futures pare gains before falling further now as we move along the session.
For USD/JPY, a move back below the 110.00 level is a bit of a psychological blow for buyers in the near-term. However, price is still holding above both key hourly moving averages for now so there's still some optimism seen in the pair.
But judging by how trade tensions are weighing on risk to start the week, look out for a potential test of said key hourly moving averages near 109.75 currently. That will be a key test of buyers' resolve as we start the week and search for a trend.
