USD/JPY slips below 112.00 handle

The USD/JPY pair finally broke through a narrow trading range held through European session and drifted below 112.00 handle. 

Currently trading around 111.90 region, the pair ran through fresh offers during early NA session amid prevalent cautious sentiment in wake of the political situation in Europe and is seen benefitting the Japanese Yen's safe-haven appeal. 

Meanwhile, a modest greenback retracement, with the key US Dollar Index reversing early gains and turning into negative territory, also collaborated to the pair's downslide in the past hour or so.

In absence of any fresh triggers, in-terms of market moving economic releases, the latest leg of downslide could also be attributed to position unwinding as investors remain cautious ahead of Prime Minister Shinzo Abe's meeting with the US President Donald Trump.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet notes, "In the 4 hours chart, technical indicators have resumed their declines after failing to overcome their mid-lines, whilst the 100 SMA continues heading south around 113.40. Earlier this week, the pair bounced twice from its 100 DMA, today at 111.65 and the level to break to confirm a new leg lower towards 111.20. A daily close below this last should favor a continued slide towards the 100.00 region during the upcoming sessions."