The greenback is losing some ground ahead of the European market open as risk sentiment is on the up while bond yields are also sitting lower today. USD/JPY is down 0.4% to 147.75 at the lows for the day, though still holding just above its 100-day moving average of 147.51 currently:
USD/JPY daily chart
That remains the key technical level to watch for the pair amid the pushing and pulling this week.
Elsewhere, EUR/USD is up 0.2% to 1.0875 and USD/CHF down 0.3% to 0.8678 at the moment. Looking over to the commodity currencies, NZD/USD is up 0.2% to 0.6113 while AUD/USD is up just 0.1% to 0.6585. The latter might see more limited movement despite the enthusiasm as there are large option expiries in play as highlighted here.
The moves are coming as equities stay buoyed ahead of European trading, following China’s RRR cut announcement here.