USD/JPY testing lows near 111.35 as risk-off seeps back

• Risk-off seeps back, drags yields, equities and USD/JPY lower.
• Focus on risk trends, US data and US-China trade talks for fresh directives.

A fresh spell of buying is seen around the JPY, as the European traders hit their desks, keeping the USD/JPY pair near the lower bound of today’s trading range so far near 111.35 levels.

The spot traded in a 20-pips narrow range almost throughout the Asian trading but came under some selling pressure towards early Europe after the Asian equities turned lower alongside the US equity futures and Treasury yields, suggesting fading Brexit and US-China trade optimism.

Markets turned cautious and flocked to the safety bets such as the Yen ahead of the meeting between the US President Trump and the Chinese Vice Premier Liu He on trade talks, scheduled later today at 2030 GMT. Further, the WSJ reported that Trump may announce a summit with the Chinese President Xi in the meeting.

Meanwhile, the flat action seen in the US dollar across its main competitors amid a slowdown in the US service sector further added to the bearish tone around the major. Focus now remains on the US jobless claims data and trade talks for near-term trading opportunities.

USD/JPY Technical Levels