USD/JPY: remains tentative on the lower end of recent sell-off

Currently, USD/JPY is trading at 110.35, up 0.08% on the day, having posted a daily high at 110.43 and low at 110.21.

Wall Street closes mixed, records gains for July

USD/JPY slipped below 110.50 overnight, held up by the Dow Jones making fresh highs and the support at 111.20, despite a broadly weak dollar across the board. End of month flows set off a tear in the euro and sterling at the start of the US session, also weighing on the yen and slowing up its gains, despite the US political uncertainty, (White House Comms Director fired after less than a week) igniting mild risk-off sentiment.

Forex today: dollar and rates down, euro and sterling on a tear

USD/JPY levels

USDJPY: Possibly sell rallies above 110.70  

Valeria Bednarik, chief analyst at FXStreet explained that the pair maintains a clear bearish stance intraday. "In the 4 hours chart,  the price is further below its 100 and 200 SMAs, with the shortest about to cross below the larger, and technical indicators maintaining strong bearish slopes. Below the mentioned daily low, the pair has scope to extend its decline towards the 109.80/90 price zone, with a break lower opening doors for a steeper slide towards 108.80, June's monthly low," argued Bednarik.