USD/JPY drops to nine-day lows, finds support above 113.50
- Yen holds onto daily gains on the back of a deterioration in market sentiment.
- US yields decline significantly while US stocks are mixed.
- USD/JPY remains in the weekly consolidation range.
The USD/JPY is falling on Friday, extending the retreat from the multi-year high it reached on Wednesday near 115.00. Hours ago it bottomed at 113.58, the lowest level since November 10. It then bounced to the upside, but it was unable to regain 114.00.
The yen is among the top performers on Friday. It pulled back during the American session but still remains strong supported by lower US yields and falling equity prices. The US 10-year yield stands at 1.52%, down 4%. Investors’ sentiment is mixed in US markets while European stocks are all in red. The cautions tone following the announcement of a national lockdown in Austria weighed on risk appetite.
The USD/JPY dropped sharply from 114.50 and bottomed at 113.58. In the short term it holds a negative tone. The weekly chart shows the current consolidation range intact, between 113.20 and 114.40. A close above the last one or below 113.20 should provide fresh signs.
The decline of USD/JPY was limited thanks to a stronger greenback. The demand for the dollar also rose amid a run to safety. The DXY trades at 95.80, up 0.31% for the day. It tested the YTD high and pulled back.
Technical levels
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.
