USD/JPY retreats towards the lows of the day
USD/JPY momentarily rose above the 61.8% retracement of the post-BOJ drop and reached the best level since April 28 but it's slowly been beaten back.
After touching a high of 109.56, it's down to 108.66, not far from the European low of 108.52. Look for more selling if that's hit, although time is running out on the day.
The rejection reinforces the resistance. It's been prompted by worsening risk aversion with the S&P 500 down 11 points and 10-year Treasury yields down 4 bps.
This is a big disappointment for the US dollar bulls. Strong retail sales and consumer sentiment data should have been the kind of news to light a fire under the beaten-down dollar but it hasn't happened.
