USD/JPY down to 108.58 on the day as bonds recover from earlier setback
The trading range in the pair remains rather mild - just 20 pips - but this will be a key pair to watch as we look to close out the week. US-China trade will be a key driver affecting the pair but also the US non-farm payrolls later today.
As things stand, sellers remain in near-term control and is looking to keep price action below the key hourly moving averages as well as the 200-day MA @ 108.87.
The nudge lower in the past hour comes as bond yields retreat after the earlier spike from somewhat more positive US-China trade headlines:
Looking ahead, US non-farm payrolls will be a key risk event to watch out for. If the data there disappoints and the unemployment rate also ticks higher, it could send out jitters surrounding the health of the US economy.
In turn, that should weigh on risk assets and see the pair dragged lower. Be wary of a firm break below 108.50 and the 4 December low @ 108.43 if we do see such a scenario.
That aside, keep your eyes and ears peeled for more trade headlines that could potentially cross the wires and shift the risk mood around before the weekend.
