Stock tumble leading to some flows out of the pair
The US stocks continue to fall with the S&P index now down -1.9%. The NASDAQ index is down -3.4%. Yields are also turning negative and trading near lows for the day. The 10 year yield is at 0.623% -2.4 basis points and at the low yield for the day.
That has traders selling the USDJPY.
Looking at the hourly chart, the price is testing – and now moving below – the London low at 106.175 area. Below that is a rising trend line at 106.08. The 200 hour moving average is at 106.05 and the 100 hour moving averages at 105.916. Those would be the the targets on further steps to the downside.