Sellers are going in search for a downside break after some consolidation around 109.60-90, as price looks to firmly settle below the 50.0 retracement level @ 109.69.
The low today is now touching 109.45 with the 29 March low @ 109.37 a minor support level to watch, alongside the 61.8 retracement level @ 109.38.
10-year Treasury yields are down to the lows for the day as well, falling 2.5 bps to 1.649% and that is keeping the yen underpinned on the session. The Japanese currency is the best performing major currency so far with USD/JPY marked down 0.4%.
With EUR/USD also threatening a potential breach above its 200-day moving average @ 1.1882, the technicals are starting to shift in favour of being more bearish for the dollar.
The fact that Treasury yields look to have found a ceiling at 1.75% and is stalling below 1.70% this week only adds to reason for a bit of a pullback phase for the moment.