Most dollar pairs are little changed but USD/JPY is keeping lower today as we are seeing a bid in bonds take place after Fitch cut US' credit rating from AAA to AA+ earlier. That is leading to a slightly more risk-off mood in markets with equities being beaten down after the stuttering start to August yesterday.
The latest drop in USD/JPY today isn't too harmful in the bigger picture though. It will require sellers to break back below 142.00 to really invalidate the latest upside break, at least from a technical point of view.
Further near-term support is then seen at the 100 and 200-hour moving averages, in the region of 141.25-46 currently. As such, there is much work to do.
But just be mindful that in the coming day(s), traders will also turn their focus and attention to the US jobs report on Friday. And that should have a much bigger impact on trading sentiment as opposed to the news today.
