Of note, the greenback is slipping against the European currencies and the Japanese yen for now. EUR/USD is up 0.3% to 1.1030 while GBP/USD is once again testing waters just above the 1.2500 mark, also up 0.3% on the day. Looking at broader markets, equities are sensing a calmer mood while Treasury yields are still falling with 10-year yields down 3 bps to 3.408% currently.
For equities, I reckon it's a bit too early as we might get another twist in the regional banking saga once Wall Street comes into the fray later. Meanwhile, lower yields is continuing to put a drag on USD/JPY with the pair now down 0.6% to 135.75 on the day. Here's a look at the daily chart:
The pair came close to testing resistance from the 8 March high yesterday but amid a reversal in market sentiment, it fell back below the 200-day moving average (blue line). That is keeping sellers interested and when you look at the near-term chart:
We can see that price is falling back under the 100-hour moving average (red line) near 136.00, and that sees sellers recapture some near-term control. As such, the near-term bias now is more neutral with price action having room to roam between that and the 135.00 mark with the 200-hour moving average (blue line) also only coming in at 135.97.