USD/JPY pushed lower amid safety flows for now

<p>Most dollar pairs are little changed but USD/JPY is keeping lower today as we are seeing a bid in bonds take place after Fitch cut US' credit rating from AAA to AA+ earlier. That is leading to a slightly more risk-off mood in markets with equities being beaten down after the stuttering start to August yesterday.</p><p>The latest drop in USD/JPY today isn't too harmful in the bigger picture though. It will require sellers to break back below 142.00 to really invalidate the latest upside break, at least from a technical point of view.</p><p>Further near-term support is then seen at the 100 and 200-hour moving averages, in the region of 141.25-46 currently. As such, there is much work to do.</p><p>But just be mindful that in the coming day(s), traders will also turn their focus and attention to the US jobs report on Friday. And that should have a much bigger impact on trading sentiment as opposed to the news today.</p>

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