USD/JPY traders in Asia are soaking up the mood from overnight and sitting on their hands in choppy market conditions. USD/JPY is virtually unchanged on the session with a bearish tendency, albeit the Nikkei is opening with a bid, up 0.32% so far. USD/JPY is currently trading at 105.90 following a drift to the downside from the lofty heights of the 107 handle. European and US trade were both heavily risk-off following another poor data print from the eurozone and inverted yields in both the UK and US curve.
« This overshadowed the as expected Q2 Eurozone GDP . Q2 GDP in Germany had minimal market impact,» analysts at Westpac explained. The Nasdaq Composite Index dropped 3% lower to close at 7,773. Consequently, USD/JPY extended its Sydney session decline from 106.80 to a low of 105.66, the yen the best performer on the day.
« The daily low was set at 105.64, providing an immediate short-term support, and a break below it will likely result in additional slides toward the 105.00 figure.» USD/JPY«.
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