USD/JPY has made new session lows after Fed Chair Powell disappointed market participants that were hoping he would be more attentive to economic risks from the trade war nN9N23A02K, particularly after China just announced its retaliation for the latest U.S. tariff hikes .
Treasury yields have made new lows in response to Powell's centrist policy comments, less because of expectations of more rapid rate cuts, but as a risk-off response to what some see as a Fed falling behind the rate-cutting curve and eventually having to catch up.
USD/JPY is falling toward the 10-DMA at 106.27 and tenkan support by 106.
Falling Treasury yields and wobbling stocks make sell stops below 106 vulnerable.
If USD/JPY closes below 106 the focus shifts to August's 105.05 low by large 105 options defenses, followed by 2019's flash-crash low at 104.10.
Beyond the academic presentations upcoming from Jackson Hole, the market focus now shifts to President Trump's G-7 meetings and possible response to today's China tariff increases.