USD/JPY inches towards week's lows as risk mood softens slightly

Technical Analysis

Author: Justin Low | usdjpy

USD/JPY hits a low of 108.16 on the day

USD/JPY H1 14-06
US equity futures have moved lower alongside Treasury yields with the former down by 0.2% on the day at the lows, while 10-year yields are weaker by 2.6 bps to 2.068% currently. Economic data from China certainly didn't help with that as we saw China's industrial activity expanded by its weakest on an annual basis since February 2002.

That has pushed USD/JPY lower as sellers remain in near-term control having defended a test of the 200-hour MA (blue line) earlier today. Right now, there is some support from yesterday's low @ 108.17 but beyond that further support is seen around 107.80-00 next.

As markets exhibit signs of caution, be wary ahead of the US retail sales release later. A relatively poor reading there could set off a strong flight to safety move later today.

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