Tech stocks were battered in trading yesterday and that led to more iffy risk sentiment in general. The market mood is calmer today but it is still early to draw much conclusions.

The slump in the Nasdaq is bringing it close to its 200-day moving average, where dip buyers stepped in strongly at the start of this week. That will be a key level to watch in the sessions ahead as such.

The yen is leading gains in the major currencies space but if anything else, I reckon any further pullback will make for a potentially great macro trade this year. Considering policy divergence, higher yields, and omicron risks likely to fade after Q1 2022, we could see yen pairs pull higher through to year-end.

I'd wager commodity currencies would do well in that regard, with USD/JPY also potentially an outperformer. For now, the latter is down 0.4% to 113.70 on the day as sellers are trying to look towards testing the 100-day moving average @ 113.00. That alongside the November to December lows around 112.53-72 will make for a good support area for buyers to step back in.

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