USD/JPY holds weaker near multi-day lows, below mid-109.00s amid risk-off mood

The USD/JPY pair traded with a negative bias for the third consecutive session and was now seen heading towards the lower end of the weekly trading range. 

Against the backdrop of Wednesday's perceived dovish FOMC minutes, the latest rumours that National Economic Council Chairman Gary Cohn was set to resign kept the US Dollar on the back-foot and was seen weighing on the major.

Adding to this, a fresh wave of global risk aversion trade, in wake of a terror attack along one of the Europe's most iconic tourists attractions, Las Ramblas in Barcelona, further benefitted the Japanese Yen's safe-haven appeal and collaborated to the heavily offered tone surrounding the major.

With the only scheduled release of Prelim UoM Consumer Sentiment Index from the US, today's US economic docket lacks any major market moving economic data and hence, the pair remains at the mercy of broader market risk sentiment.

   •  Forex Today: Risk-off dominates Asia on Spain ‘Terror Attack’, a light session ahead

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: "The inverted flag pattern was breached to the downside last week. The failure at the weekly 50-MA earlier this week, followed by a move back below the flag support is encouraging for the bears. A close today below the flag support would open doors for 106.38 [61.8% Fib R of June 2016 low - Dec 2016 high]."