The dollar is finding little reprieve in European trading, even if the market mood is seemingly more tentative. USD/JPY has now fallen to fresh lows since mid-August as the pair drops below 134.00 as sellers threaten to take out the 200-day moving average (blue line), seen at 134.49.
That is a key level on the charts as a break below that paves the way for a potential push towards 130.00 next for the pair, with there being little support in the way.
The drop comes as we start to see Treasury yields inch towards the lows yesterday, with 10-year yields now seen at 3.517% - nearing its own 100-day moving average at 3.48%.