USD/JPY falls to a low of 110.15 on the day
The drop brings the pair towards a test of the 100-hour moving average (red line) @ 110.14 now, with further support seen closer to 110.00 and the 200-hour moving average (blue line) @ 110.04 as the yen stays more bid in European trading.
This comes on the back of lower yields, with 10-year Treasury yields down nearly 5 bps to 1.238%. The more wobbly risk mood also isn't helping with keeping the pair afloat as European indices are down alongside US futures (besides tech).
For now, keep above the key hourly moving averages and the near-term bias stays more bullish, though resistance at 110.50-60 is limiting gains.
But fall back below that and 110.00 and the downside pressure is back on for the pair as we look towards the Fed meeting later in the week.
