US 10-year yields trades at 2.90%, down by 2.7 bps
With the low today being at 2.88% earlier. And the fall in yields is what is helping to pin down yen pairs as we head into European trading.
USD/JPY is currently pivoting around the 109.00 figure level, with the low in the Asian session being at 108.92. The pair is staying supported at the figure level, but further support is seen @ 108.83 in the form of the June 2017 low. That will be a key area to watch out for later if yields continue to slip further.
Any move below that would lean towards the support region between the 100-day MA (red line) @ 108.21 and the 38.2 retracement level @ 108.44. The former will be a key level to hold as a break below would return a fresh bearish sentiment back in the pair.
US and UK traders will be back in the fray later today so that should at least provide a clear indication of where risk sentiment is headed. So far, Asian stocks aren't faring too well - with ongoing worries in Italy and the Eurozone damping investor sentiment.
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