rfxsignals May 23, 2019 No Comments

USD/JPY tests a break of the 100-hour moving average

USD/JPY H1 23-05

The pair is closing in on session lows, falling to 110.16 and is testing the 100-hour MA (red line) again today. If sellers manage a break below that, buyers will lose near-term control as the near-term bias turns more neutral instead.
Risk sentiment remains rather soft in European trading so far as European equities are posting declines well over 1% now, with US equity futures also down by nearly 0.8%. Meanwhile, Treasury yields are at their lows with 10-year yields down 2 bps to 2.36%.
The undertones seen in markets today are helping to keep yen pairs offered with USD/JPY sellers looking to establish some control in the near-term again.
Further support is then seen closer to bids at 110.00 before the 200-hour MA (blue line) @ 109.89 will be called into question. Look out for those levels in the session ahead.
Update: USD/JPY now falls to a low of 110.11, new lows for the day