USD/JPY touches a low of 110.89 on the day
And it's not just USD/JPY which is falling, the Japanese yen is gaining across the board with all yen pairs also falling to session lows currently.
Slightly negative sentiment in European equities is helping to exacerbate the moves after Chinese stocks faltered in the final two hours of trading but a breakdown in key near-term technical levels are also pushing yen pairs lower in my view.
Both USD/JPY and EUR/JPY have now broken below the two key hourly moving averages and near-term bias has become more bearish and we're seeing further continuation after those breaks.
For USD/JPY, there is support around the 110.75-80 level but there is also a swing area below it close to 110.60 also providing additional support. On the daily chart, the 110.85 level is the key level to watch out for:
The latest downside move in July saw sellers fail to secure a daily close below the 110.85 level and that has helped to give buyers conviction to push the pair back higher. So, that will be the key level to watch out for this time around as well.
Beyond that, further support is then seen at the February high @ 110.48.
As mentioned earlier, there isn't much that is capturing the market's attention today with little data and no clear catalyst apart from a move lower in equities so this is the space (yen pairs) to watch out for in today's trading.
