The low earlier hit 157.70 and that puts it up against a test of key trendline support for the year, seen around 157.75 currently. It’s a big moment for USD/JPY as a break of that will start to chip away at the resolve of dip buyers. And that could lead to a more meaningful retracement lower for the pair in the short-term.
For today itself, a softer risk mood seems to be weighing on overall market sentiment as we look towards European trading.
S&P 500 futures are now down 0.4% with tech shares looking rather heavy in particular. Nasdaq futures are down 0.7% currently.
The dollar itself is keeping a bit more mixed and holding lightly changed elsewhere after yesterday’s action. The stronger US retail sales data helped to give the greenback a nudge higher but it proved to only be temporary.
This article was written by Justin Low at www.forexlive.com.
