USD/JPY trades near the lows for the day at 109.43 currently
The pair continues to track lower after breaking below the 200-day MA (blue line) in yesterday's close. With a break of the 50.0 retracement level @ 109.65 from the November to March downtrend swing also on the cards, the pair could be in store for more pain as we close out the week.
The next key support level comes in the form of the 14 June low @ 108.83, a level which helped to provide support for buyers (along with the 100-day MA) earlier this month. Further below will see support in the form of the 38.2 retracement level @ 108.44 and the 100-day MA @ 108.32.
At the moment, the yen is heavily driven by risk sentiment in the market and with Trump looking to impose tariffs on US auto imports and the increasing risk of the US-North Korea summit not taking place, it's not helping to ease investors' nerves.
Treasuries are also continuing to catch further bids from yesterday with 10-year yields having fallen below 3% overnight and currently sits near the lows at 2.98% - down by 1.2 bps on the day. The Nikkei is also down by 1.36% currently, and put together all the above it's providing support for the yen in trading so far.
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