USD/JPY heads lower on losses in European stocks

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - The bid tone on the safe haven JPY gathered pace, pushing the USD/JPY back to its daily lows after the European stocks extended losses.

Safe havens on the rise

The Yen and other traditional safe haven assets saw renewed buying interest on account of a drop in the major European stock markets. The German DAX extended losses to trade more than 1% lower. The London’s FTSE also fell almost 1%.

Consequently, the USD/JPY pair is heading once again towards daily lows around 119.20-119.15 levels. Even the long duration treasury yields suffered losses. Ahead in the day, the sentiment on Wall Street and US personal spending report could influence the pair. Fed speech could affect market’s appetite for the US dollar as well.

USD/JPY Technical Levels

At 120.25, the immediate support is located at 120.00, under which losses could be extended to 119.62 (Sep 23 low). On the other side, resistance is located at 120.60 (daily high) and 120.88 9200-DMA).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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