USD/JPY falls to a low of 106.83
The pair now closes in on the June low of 106.78 on the headlines but so far China has done little to suggest that trade talks have hit a snag. I reckon that in itself should be taken as a more optimistic reaction as it means that both sides will still talk in September.
For now, the level above is the risk for buyers but as long as price holds below the 107.00 handle, sellers will have conviction to chase a move lower in my view.
As for key risk events to watch out for later today, it doesn’t come any bigger than the US jobs report at 1230 GMT.