US-China trade spat talk has seen USDJPY fall to test 106.00 4 April
General yen demand on the back of risk-off plays has seen USDJPY fall from 106.60 to 106.00 this session with yen pairs similarly falling and helping to cap core pairs across the board. Excellent news for rally sell plays that I've been calling for a while now.
Some good demand/support around 106.00 with larger into 105.75-80 as per my order board post and that's enough for the moment, along with the usual algo-led over-kill on headlines, to see USDJPY back to 106.15 but rally sellers poised to plug a few holes into 106.30-50.
GBPJPY selling down to 149.22 has seen GBPUSD cap again and fall back to 1.4063 pleasing the rally sellers again but buyers poised into 1.4050/149.00 still.
EURJPY down to 130.41and capping EURUSD at 1.2315 but stalling just ahead of decent buy interest around 130.30 then 130.00 .
Similar patterns for AUDJPY/AUDUSD, NZDJPY/NZDUSD and CADJPY/USDCAD.
I would expect rallies to be limited though ahead of hearing what Mr T has to tweet when he wakes up.
Associated equity wobbles adding to risk-off sentiment too with DJI futures down 1.8%, Nasdaq -1.9% and S&P -1.4%
USDJPY capping again but ranging