USD/JPY drops to fresh weekly lows below 109.70

USD/JPY came under strong bearish pressure in American session.
US Dollar Index extends slide below 92.50 ahead of the weekend.
10-year US Treasury bond yield is down more than 4% on Friday.

Eren Sengezer FXStreet

The USD/JPY pair broke out of its daily range during the American session and dropped to its lowest level in a week at 109.65. As of writing, the pair was down 0.65% on the day at 109.67.

Falling US T-bond yields drag USD/JPY lower

The sharp decline witnessed in the US Treasury bond yields and the broad-based USD weakness is causing USD/JPY to stay under strong bearish pressure ahead of the weekend. Currently, the benchmark 10-year US Treasury bond yield is losing 4.5% on a daily basis at 1.3%.

The data from the US showed on Friday that the University of Michigan's Consumer Sentiment Index plunged to its lowest level in nearly 10 years at 70.2 in August's advanced reading. This print missed the market expectation of 81.2 by a wide margin and forced the greenback to weaken against its rivals. At the moment, the US Dollar Index is losing 0.56% on the day at 92.47.

Breaking: US UoM Consumer Sentiment Index falls sharply to 70.2 in August.

With this recent slump, USD/JPY now remains on track to end the week in the negative territory. There won't be any other data releases featured in the US economic docket in the remainder of the day and USD/JPY is likely to close below the key 110.00 psychological level.

Technical levels to watch for

USD/JPY

Overview
Today last price	109.66
Today Daily Change	-0.75
Today Daily Change %	-0.68
Today daily open	110.41

Trends
Daily SMA20	109.96
Daily SMA50	110.17
Daily SMA100	109.69
Daily SMA200	107.39

Levels
Previous Daily High	110.55
Previous Daily Low	110.32
Previous Weekly High	110.36
Previous Weekly Low	108.72
Previous Monthly High	111.66
Previous Monthly Low	109.06
Daily Fibonacci 38.2%	110.41
Daily Fibonacci 61.8%	110.46
Daily Pivot Point S1	110.3
Daily Pivot Point S2	110.2
Daily Pivot Point S3	110.07
Daily Pivot Point R1	110.53
Daily Pivot Point R2	110.65
Daily Pivot Point R3	110.76

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD steadies near 1.1650 ahead of US Nonfarm Payrolls

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. Traders remain cautious ahead of the US Nonfarm Payrolls report, which is expected to offer further insight into labor market conditions and the Federal Reserve’s policy outlook. December NFP is forecast to show job gains of 60,000, down from 64,000 in November.

GBP/USD: Further weakness could challenge 1.3400

GBP/USD remains under unabated selling pressure on Thursday, slipping to fresh three-day lows around 1.3415 in response to further improvement in the sentiment surrounding the Greenback ahead of Friday’s key NFP data.

Gold defends $4,450, looks to the crucial US NFP report

Gold struggles to capitalize on the previous day's goodish move up from the vicinity of the $4,400 mark and attracts some sellers while defending $4,450 in the Asian session on Friday. The critical US employment details will offer more cues about the Fed's rate-cut path, which, in turn, will influence the US Dollar price dynamics and provide a fresh impetus to the non-yielding bullion.

Forecasts for Payrolls are all over the place

Yesterday’s data put the kybosh on the idea the Fed needs to cut rates fairly urgently to protect the labor market. The jobs component of the ISM services index was nicely over 50, and that rising JOLTS voluntary quits rate also points to no real heartache in labor.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

XRP slides as institutional and retail demand falters

Ripple is trading down for the third consecutive day on Thursday amid escalating volatility in the cyrptocurrency market. After peaking at $2.41 on Tuesday, its highest print since November 14 amid the early-year rally, XRP has quickly ran into aggressive profit-taking.