USD/JPY touches a session low of 109.34
Price is now closing in on near-term support around 109.24 as risk tones grow softer at the start of European trading. European stocks are now opening near flat levels while Treasury yields are seen slumping further, with 10-year yields dropping by 3.3 bps to 2.283%.
US equity futures have also pared earlier gains and overall the weaker sentiment is weighing on yen pairs in early trades:
For USD/JPY, it's very much a trade on how risk assets will react to US-China trade tensions over the coming weeks/months. Key resistance is seen around the 100-day moving average at 110.57 with offers around 110.00 the being the first area where sellers will make their stand. Meanwhile, key support is seen at the May lows around 109.02-15 with bids layered around 108.90-00 to offer a further area for buyers to lean on.
