USD/JPY falls under 107.00, tests waters below the 100-hour moving average
The lows seen this week stalled around daily support from the 50.0 retracement level @ 106.45 and that is the level that gave buyers an area to lean on before month-end flows saw the pair surge to a high of around 107.50 in trading yesterday.
The upside move saw buyers break above both key hourly moving averages but sellers leaned on a near-term trendline resistance to limit gains before price slowly retraced lower.
As the risk mood continues to be more defensive in trading today, the yen is leading the charge in the major currencies space and that is pressuring USD/JPY to the downside.
Price is now testing waters under the 100-hour MA (red line) @ 106.89 and if sellers can hold a break below that, it will open up a retest of the lows around 106.45-50 again.
For buyers, it is a disappointing fizzle after the flows yesterday helped to see some key near-term levels taken out but they could not build on that further.
Amid softer risk tones today, the bias is favouring sellers but let's see what other headlines there will be later today and how Wall Street takes all of this in.
