USD/JPY fails to break above 107.90 amid drop in US stocks
|- US stocks are down on Friday, the safe-haven yen is stronger across the board.
- US dollar also up thanks to US bond yields which are at multi-week high.
The USD/JPY is trading at around 107.55 up 0.18% as bulls made an attempt to break above April 13 high in the late European session.
The yen is stronger across the board on Friday. It is higher against the euro, the British pound, the Canadian dollar, the Australian dollar, the New Zealand dollar and the Swiss franc. However, the US dollar also benefitted from strong renewed enthusiasm in the week and the USD/JPY pair is now mainly trading sideways in intraday trading.
The yen which is a safe-haven currency is stronger as stock markets are lower. The main US indices dropped with technology stocks being the worst performers. Apple gapped down and is down more than 4% on the back of comments from Morgan Stanley bank which said that Apple's iPhone sales for the June quarter will disappoint the market. Additionally, the S&P 500, the Dow Jones and the Nasdaq are now all trading below their 50-period simple moving average on the daily time frame, which is seen as bearish.
The spike in US bond yields is supporting the US dollar. The higher the yields the higher the demand for the US dollar.
There is no macroeconomic data scheduled on the calendar and the USD/JPY will take its cues from the US strength and the price action in the stock market.
USD/JPY 4-hour chart
Resistance is seen at 107.87 high of the day and at the 109.00 handle while supports are priced in at 106.87 and 105.65 swing lows.
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