USD/JPY at the lows for the day as risk-off mood deepens
It's been a wild ride for USD/JPY in trading today
The pair is at the day's lows now trading just barely above 105.70 with price testing the 100-hour MA (red line) once again. That is the key near-term level to watch as sellers have been struggling to crack that level since overnight trading.
The yen was sent for a wild ride today as the currency fell sharply at the start of European trading amid a recovery in risk sentiment. The quick jump from 105.90 to 106.78 stalled at the 38.2 retracement level before settling lower around 106.20-30.
But after China issued a statement on trade/tariffs, the yen gained as Treasuries pushed higher with yields and equities both sinking. Right now, US 10-year yields are down at the lows for the day by over 6 bps to 1.515%.
The next key risk event later today is the release of US economic data as highlighted here. Let's see how that plays out and how it will affect the risk mood as markets continue their shift to a new market paradigm that centers on the global economic slowdown.