Of note, price has now fallen back below the 100-hour MA (red line) @ 106.43 after several attempts by sellers to break below the level since overnight trading.
A hold below the level will open up the path towards a test of the 200-hour MA (blue line) @ 106.15 next. If sellers manage that, they will regain near-term control of the pair.
The move lower here comes about a further drop in Treasury yields, with 10-year yields now down by more than 3 bps to 1.555% currently. That is helping to keep the yen underpinned across the board in the European morning.
The next key risk event for the pair in the session ahead will be the euro area PMI releases. Given the current risk mood, expect any sizable downside miss to possibly reinvigorate fears surrounding the global economy and that may trigger more risk-off flows.