Bond yields are retreating slightly and equities are looking fairly sluggish to start European morning trade. That is putting a bid in the yen, with the dollar also keeping steadier for the most part across the board.
USD/JPY has fallen to a low of 133.50 on the day, with 10-year Treasury yields down 1.5 bps to 3.014% from around 3.03% earlier in the day. 10-year German bund yields briefly hit fresh highs since 2014, up to 1.37%, before coming back down now to 1.34%. The ECB remains the key risk event to watch later in the day.
Going back to USD/JPY, the pair appears to be taking a bit of a breather as buyers are still poised to try and push towards 135.00 next.
Elsewhere, GBP/USD is down and closing in on another test of 1.2500 although stronger daily support is seen closer to 1.2458-71. The week's low at 1.2430 will also be a key point to watch in case the downside extends.
Meanwhile, EUR/USD is down slightly from 1.0725 to 1.0710 but price action remains in a bit of a consolidation phase as we await further clues from the ECB later today.
Commodity currencies are struggling slightly amid the more sluggish risk mood, with the aussie pinned down by over 0.3% to 0.7160 levels at the moment. The technical rejection from the May highs and the 200-day moving average is keeping sellers poised to push for a move lower:
The support region around 0.7140-55 is a key short-term area to watch in seeing if buyers can stay in the game.