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USD/JPY touches a session low of 110.35
Risk isn’t really souring any further on the day as European equities are still playing catch up to overnight US equity gains while E-minis are trading about 0.2% lower currently, little changed over the past few hours.
However, the yen continues to push higher as cautious sentiment towards risk/equities remain despite the rebound over the past two days. Japanese traders will observe a extended long weekend and will only be back on 4 January.
Hence, word is that there is thinning of liquidity in the yen today as traders are keeping positions rather light ahead of the holidays. Either way, the pair still trades with respect to the technical levels and right now the bias/momentum is more bearish still.
As price is unable to make its way back above the 200-day MA (blue line) over the past few sessions, it is an indication that sellers are still looking the more likely to find a break lower. The key support level and psychological barrier will be that 110.00 handle.
With US equity futures still tepid, the next big push in the pair today will have to depend from sentiment when the US cash equity market opens later.