The Yen outperformed FX, the US Dollar dropping 1.08% against the Japanese currency. USD/JPY finished at 106.02 in New York, further easing in early Sydney to 105.85 before settling at its current 106.15.
Apart from risk-off, the other driver of USD/JPY is the US 10-year yield, which dropped 24 basis points last night. In contrast Japanese 10-year JGB rates were up 0.5 basis points to +0.005%. This also added to downward pressure on the Dollar.
USD/JPY traded to an overnight low at 105.146 before rallying to its NY close of 106.05. Immediate support comes in at 105.60 followed by 105.20. Immediate resistance can be found at 106.30,106.80 and 107.20. Look for another choppy session in the USD/JPY pair, likely 105.20-107.20. Just trade the range shag on this one today.