USD/JPY threatens firmer break under 155.00 on safety flows | Forexlive

At the end of last week, the 155.00 level proved to be the key for buyers in keeping the pair afloat. But amid the risk-off mood in markets today, we’re seeing sellers finally making a case for a downside break. The pair has struggled in the past two hours, falling from around 155.80 to 154.70 levels now. This comes as bond yields are also slumping in European morning trade.

10-year Treasury yields are now down some 8 bps to 4.536% as bonds are keeping more bid amid the risk rout in markets.

S&P 500 futures are down nearly 2% with Nasdaq futures sliding by a little over 3% currently. That’s keeping safety flows in play to start the session in Europe.

Going back to USD/JPY, the firmer break of 155.00 is a crucial one from a technical perspective. The 50.0 Fib retracement of the swing higher since December to January is seen at 153.75 and that’s the next key level to watch. In essence, there is scope for stronger downside drafts now for the pair.

Thereafter, the downside focus shifts towards the 200-day moving average of 152.80 currently.

The broader market mood will remain a key driver in all of this. But from a technical side of things, the doors are open for sellers to go in search of something.