USD/JPY drops below 112.00 as equity prices tumble in Wall Street
|The yen gained momentum across the board during the last hours as US stocks turned negative and accelerated to the downside. USD/JPY broke below 112.00 and fell to 111.80, hitting the lowest since February 28.
The pair remains near the lows, holding a bearish tone and headed toward the second lowest close of the year and the sixth daily decline in a row.
The Japanese currency strengthened amid a rally in US bond that sent the 10-year yield to 2.430%, the lowest since March 1. In Wall Street, after a positive opening, the Dow Jones was falling 0.60% and the Nasdaq was losing 0.94%.
Technical levels
To the downside, support levels might be located at 111.80 (daily low), followed by 111.55/60 (Feb 7 low) and 111.00. On the upside, resistance might be seen at 112.25 (Asian session low), 112.50 (20-hour moving average) and 112.85/90 (Mar 20 & 21 high).
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