The near-term break is on
Price is finally breaking out of the near-term wedge and has fallen below the trendline support as well as the 100-hour MA (red line) now. The near-term bullish bias is broken as buyers once again failed to find a way to hold a break above the 110.00 handle.
Risk is taking a bit of a hit on the day with most European equity indices being down by more than 1% currently. The fall was mostly precipitated after the European Commission decided to cut growth forecasts in the region earlier.
That said, risk assets across the board are also dipping with E-minis falling by 0.7% currently and 10-year Treasury yields falling to a low of 2.66% on the day, down by 2.9 bps. Oil is also down by 1.3% currently to $53.30.
For USD/JPY, minor support is seen at 109.56 (yesterday's low) next before the 200-hour MA (blue line) comes into play @ 109.48. Break below the latter and sellers will regain near-term control.
