USD/JPY falls to 108.35 and tests the 200-hour moving average
The pair is now running into support from the 200-hour MA (blue line) with the 100-hour MA (red line) sitting close by as risk sentiment starts to sour after JP Morgan earnings miss estimates. European stocks are beginning to pare gains with the DAX falling into negative territory and the broader Stoxx 600 index also turning flat on the day weighed lower by financials.
Meanwhile, US equity futures are also just up by only 0.1% now with Treasury yields slipping to session lows.
For USD/JPY, the key hourly moving averages are vital for buyers as a hold above it would mean that the near-term bullish bias remains intact. A break below would signify a turnaround in sentiment and would fuel further negative tones in risk assets on the day.
Further support is seen at 108.00 and then the 10 January low @ 107.77 for the pair.
