USD/JPY sellers look to make a play to start European trading

The pair has been poking and prodding at the December low of 148.63 for a while now but this could be the breakthrough that sellers are looking for. The overall risk mood remains dour with S&P 500 futures now down by 0.5% at the lows for the day and we also have some positive news leading up to Japan’s spring wage negotiations here.

All of that adds to the potential technical break outlined above and could see the downside momentum gather pace in the sessions ahead.

Besides the December low mentioned above, USD/JPY is also contesting a break below its 100-week moving average of 148.67 currently. That’s another key shift in momentum that will favour sellers and one to watch ahead of the close tomorrow.

The last time the pair really traded below the 100-week moving average was September last year but the downside was then defended by the 140.00 mark, alongside a turnaround in dollar sentiment ahead of the US elections during October trading.

This article was written by Justin Low at www.forexlive.com.