USD/JPY sees early gains erased as risk tones sour

Technical Analysis

Author: Justin Low | usdjpy

USD/JPY pares gains from 110.20 to 109.75 to start the session

USD/JPY D1 19-08
The broad bid in the dollar was the key theme going into Europe but the yen is starting to see some momentum to start the session now as risk aversion deepens.

Delta variant concerns are continuing to cast a shadow over risk sentiment this week and that is staying the course today as well, with risk trades broadly slipping everywhere - not helped by some key breaks in the technical landscape.

US futures are dragged down by 0.8% while 10-year Treasury yields are down 4 bps near 1.23% and that is seeing yen pairs pressured again at the moment.

USD/JPY is dragged down from 110.20 to 109.75 as buyers lose near-term control, with price action hinting at more neutral tones for the time being.

Elsewhere, it is looking ugly for the likes of AUD/JPY as it falls to fresh lows for the year as the downside momentum gathers pace:

AUD/JPY D1 19-08

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