USD/JPYpares back yesterday's gains during Asia, 109.20 seen

• USD/JPY slips lower in Asia, hoping to find a bounce in London markets.
• Shorting the US Dollar is still very much in fashion, in good times and in bad.

USD/JPY has headed south during the Asian session, trading into 109.20 ahead of the European market open.

The US Dollar rebound proved to be shortlived, and traders are once again piling into the safety of the Yen as US futures decline in overnight trading and equities come off their recent rallies. Market risk aversion is still very much in play today, and the future looks grim as traders are stuck between a rock and a hard place: either buy into overpriced risk assets even as inflation looms, promising to send interest rates higher and capping any near-term gains, or sell everything and jump into safe havens ahead of the inevitable taper tantrums, even though there's miles of ground separating "central banks are raising rates" and "central bankers raising rates soon".

USD/JPY Technicals

Intraday support/resistance can be found at 109.09 and 109.70 respectively, with the upper bound being today's current session high, while longer-term traders will have to pause and think this one through a bit: H4 charts appear to be double-bottoming, but bearish pressure is still high, and Daily charts appear to be caught near the bottom of the sideways channel that began in earnest in April of 2017; the upper and lower bounds of the channel are 114.20 and 108.45, respectively.

Today's pivot points:
R2: 110.41
R1: 109.98
PP: 109.22
S1: 108.79
S2: 108.02