USD/JPY inches lower as yields stay heavy on the session
USD/JPY touches a session low of 106.36
Yen pairs are under a bit of pressure now with USD/JPY seen falling to a session low of 106.36 amid bond yields holding weaker. Of note, Treasury yields are sitting at the lows for the day with 10-year yields down by nearly 3 bps at 1.577%.
European stocks are also beginning to turn a little with the DAX erasing gains and Italy's FTSE MIB leading losses by as much as 0.6% amid ongoing political uncertainty still.
For USD/JPY, price looks to be headed towards a test of the 100-hour MA (red line) @ 106.26 and that will be a key test of bias in the near-term.
So far, any topside move appears to be stalling near the 38.2 retracement level @ 106.68 and that will be the risk for sellers currently.
Looking ahead, continue to keep an eye on the bond market as a further drop in yields will continue to spark stronger defensive flows in markets.