- USD/JPY on the back foot amid risk-aversion as mounting global concerns weigh.
- All eyes on fresh trade news, key US CPI report for USD/JPY’s next move.
The USD/JPY bears are seen making another attempt towards the 105 handle, as risk-off sentiment dominates the European trading amid global slowdown fears and Hong Kong protests among other global concerns.
USD/JPY: A break below 105.00 looks inevitable
Amid risk-aversion at full steam, as reflected by the negative European equities, Treasury yields and US equity futures, the safe-haven demand for the Japanese Yen is back into markets. Thus, knocking-off USD/JPY towards daily lows of 105.14.
Traders remain spooked by the latest Argentinian currency and stock markets crash while escalating Hong Kong protests combined with lingering US-China trade tensions fed global economic concerns continue to dent the appetite for risk assets.
Despite the latest leg down, the spot manages to hold above the seven-month lows of 105.05 reached on Monday, as the buying interest around the US dollar vs. its six major peers offers some support to the prices.
Attention now turns towards the US CPI data, due for release at 1230 GMT, for fresh hints on the Fed’s interest rates outlook and near-term trading opportunities in the pair.