Early trading of the European session saw a decline in US treasury yields which will drive the continued depreciation of the US dollar in the market.
Price movements in the Asian and European sessions were slower, but investors were wary of expecting more aggressive price movements in the New York session soon.
The price chart of the USD/JPY pair yesterday also saw a decline beyond the 110.00 level.
Prices moving below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame also signal for a lower price decline.
Investors are also wary of the movement of the US dollar ahead of the minutes of the FOMC meeting to scrutinize further details at the latest meeting by the Federal Reserve (Fed).
The price zone around 110.00-109.400 will be focused by investors to see the price reaction on this important zone before getting a clearer signal of the direction of further movement.
If the price manages to rebound and passes the MA50 barrier, it is likely that the price will continue the previous bullish trend with the resistance level of 111.00 to be tested.
On the other hand if the price falls lower than that zone, the price decline will be expected to head up to the support zone 108.500-108.200.
