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USD/JPY is down from around 115.05 at the start of the session and the retreat comes as we see flows spill over into bonds and away from equities in European morning trade. 10-year Treasury yields are down 3.6 bps to 1.803% from roughly 1.86% earlier today. Meanwhile, S&P 500 futures are down 0.7% after having been up 0.6% earlier.
Going back to USD/JPY, the drop puts the 100-day moving average (red line) @ 114.40 as a key support level alongside the 2 February low @ 114.15. If that gives way, then the January lows of 113.47-48 will be called into question and that will open up a path towards the November and December lows if broken as well.
It’s all about Russia-Ukraine tensions now and while there aren’t many headlines, there is still a sense of apprehension as we await how things will play out in the next few days.
Elsewhere, EUR/JPY is also down 0.5% to 128.33, AUD/JPY erasing its earlier gains from 83.85 to 83.40 and NZD/JPY denied at the 200-day moving average again in a fall from 78.05 to 77.65 currently.