USD/JPY drops to four-week lows under 108.40 as Wall Street tumbles

Equity prices extend losses in Wall Street on global growth concerns.
USD/JPY accelerates decline on Friday, points to further losses.

Matías Salord FXStreet

The USD/JPY pair remained under pressure on Friday amid a sharp decline in Wall Street that boosted the Japanese yen. The pair fell to 108.29, the lowest level since January 8. Near the end of the week, it was hovering around 108.40, a relevent technical support.

In Wall Street, the Dow Jones was falling more than 500 points or 1.75% and the S&P 1.68%. Fears about the impact on global growth from the virus outbreak weigh on stocks on Friday. US bonds soared and among currencies, the yen and the Swiss franc rallied.

USD/JPY has fallen in eight out of the last nine trading days. On Friday it accelerated the decline as risk aversion intensified. US economic data did not offer support to the pair. The greenback also lost ground versus main European currencies. The DXY tumbled 0.40% from 97.90 to below 97.50. Emerging markets currencies were the most affected.

A new week, a new month

The new month brings historic changes with the United Kingdom out of the European Union but still markets will continue to focus on the coronavirus. Chinese PMI data is due on Monday (numbers unlikely to include impact of the virus).

In the US on Monday, the Democratic Party presidential primaries officially kick off. Regarding data, the economic calendar for next week included the ISM and the official employment report. Market consensus looks for an increase in NFP of 156K.

USD/JPY

Overview
Today last price	108.42
Today Daily Change	-0.49
Today Daily Change %	-0.45
Today daily open	108.91

Trends
Daily SMA20	109.39
Daily SMA50	109.21
Daily SMA100	108.75
Daily SMA200	108.45

Levels
Previous Daily High	109.09
Previous Daily Low	108.58
Previous Weekly High	110.22
Previous Weekly Low	109.17
Previous Monthly High	109.8
Previous Monthly Low	108.43
Daily Fibonacci 38.2%	108.78
Daily Fibonacci 61.8%	108.89
Daily Pivot Point S1	108.64
Daily Pivot Point S2	108.36
Daily Pivot Point S3	108.13
Daily Pivot Point R1	109.14
Daily Pivot Point R2	109.36
Daily Pivot Point R3	109.64

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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