USD/JPY falls to three-week lows as dollar slips to start the session

The pair is down nearly 1% on the day to 151.50 levels, with price now at its lowest levels since 6 November. What is more notable though is that sellers are looking to push for a break below the 200-day moving average (blue line). The key level is seen at 151.97 and that will be a big blow to the post-election upside momentum.

In turn, that now draws in the early November lows around 151.27-33 as the next key support level. A break of that will then free up room for the pair to roam towards the downside to 150.00 potentially.

The latest drop here comes as we see bond yields also retreat further on the week. 10-year yields in the US are now down nearly 4 bps to 4.265%. After the US election, the high for yields touched 4.505% so we’re down roughly 24 bps from that.

Besides that, the dollar is also down across the board with EUR/USD up 0.4% to 1.0525 and GBP/USD up 0.3% to 1.2610. Even AUD/USD is up 0.3% to 0.6495 and NZD/USD is now up 1.0% to 0.5895 back near the highs for the day.

There’s no major trigger for the moves we’re seeing on the session thus far. So, is this perhaps all tied to some month-end shenanigans before the Thanksgiving holidays kick in? From yesterday: Potential for dollar selling this month end – Deutsche

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