USD/JPY extends slide below 108.50 on US dollar sell-off
- US dollar tumbles on Thursday, DXY down 0.60%.
- USD/JPY erases weekly gains, moves away from 109.00.
The USD/JPY pair dropped further during the American session despite the rally in Wall Street. It printed a fresh four-day low at 108.35 and it remains near the bottom, under pressure. The greenback is falling sharply across the board on Thursday.
The Federal Reserve announced new facilities to provide $2.3 trillion in loans to small businesses and municipalities, triggering a rally in Wall Street and the slide of the US dollar. The Dow Jones is up 1.50% and the Nasdaq 0.45%. Prior to the announcement futures of both indexes were in negative territory.
Economic data showed US initial claims holding at extreme high levels and a bigger than expected slide in consumer confidence. The numbers had no impact on prices as market participants continue to focus on recent developments.
The DXY is falling 0.60%, trading around 99.50. At the same time, US yields remain relatively steady despite all the action. The decline of the greenback is even more pronounced versus emerging market currencies. The yen is mostly lower across the board on the back of risk appetite but losses so far are moderated.
USD/JPY 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.
