It's looking like a rough one for the dollar to start the session, as heavier bond yields is weighing on the greenback at the moment. The market is largely reacting to the BOJ policy decision earlier and the dollar is being offered as we get into European trading.
In particular, USD/JPY has seen a significant climb down in the past few hours since peaking around 131.50 earlier in the day. The pair has now stumbled back down to 129.80 and is perhaps not helped by the latest remarks from Japanese officials here.
The chart shows that the near-term bias is now more neutral again and that opens up a bit of a range play in and around the 130.00 mark with the 100-hour moving average (red line) seen at 128.88 and the 200-hour moving average seen (blue line) seen at 130.63 currently.
But keep below 130.00 and sellers will definitely feel more comfortable to keep the downtrend going as highlighted earlier here.
