USD/JPY touches a low of 108.53 on the session
Price closes in on a test of the 100-hour MA (red line) @ 108.51 with buyers currently leaning on support from the 23.6 retracement level @ 108.54 as well.
The bit move lower comes as European equities fall deeper into negative territory and Treasury yields also declining on the session alongside US futures. 10-year yields are now down by 1.4 bps to 2.05% while E-minis are down by 0.3% to session lows.
The declines are more profound in European stocks with major indices roughly 1% down on the day now after Bayer and Lufthansa reported weak forecasts, exacerbating the declines seen during the session.
The softer sentiment is also seeing European bond yields fall further ahead of the Fed tomorrow with the aussie and kiwi also dragged slightly lower against the dollar.
Back to USD/JPY, the 108.50 level and the 100-hour MA will be key in sustaining the near-term momentum ahead of the FOMC meeting decision but the directional move after will depend on what the Fed chooses to communicate and how Treasuries respond to that.