USD/JPY closes in on last week's lows on weaker yields
USD/JPY slips to a session low of 108.22
This comes as Treasury yields continue to make new lows for the day with 10-year yields down by 2.4 bps to 2.07% currently. The softer mood in the bond market is feeding into gains for the yen on the session, with USD/JPY testing last week's swing lows around 108.17-22.
Looking at the hourly chart above, the near-term bias in the pair has shifted from being more bullish to more bearish now as price broke below both key hourly moving averages in Asia Pacific trading today.
However, the price range remains largely contained around 108.20-60 since last week as traders are forced to wait on fresh developments from the US-China trade dispute and the FOMC meeting this week.
As such, the pair should continue to maintain its current levels ahead of the Fed tomorrow with further support seen closer to the 107.85-00 levels where notable bids are also lined up around the figure handle.