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USD/JPY extends slide, hits fresh low under 110.00

  • US dollar under pressure following Fed Chair Powell remarks.
  • Decline in US yields weighs on USD/JPY that is ending a three-day positive streak.

The USD/JPY dropped further after the beginning of the American session and into the London fix, reaching at 109.95 the lowest level since last Friday.

Dollar under pressure as US yields slide

As of writing, USD/JPY trades at 111.10, down 50 pips for the day. A weaker US dollar pushed the pair to the downside affected by Fed’s Powell comments. He mentioned the labor market is still has a “long way to go”. He said inflation would likely remain elevated in the coming months.

Powell’s message was seen as “dovish” by market participants. US yields turned to the downside and stocks spike to the upside. Over the last hours, Wall Street indices moved off highs, supporting further the yen.

The DXY is falling after rising during two consecutive days and is back under 92.50. The 10-year yield fell to 1.36%, retreating from the weekly high it reached on Tuesday.  

On Tuesday, the dollar soared across the board boosted by higher-than-expected inflation data. The PPI index also came in above expectations on Wednesday, but the numbers were offset by Powell’s comments.

Technical levels

USD/JPY

Overview
Today last price110.08
Today Daily Change-0.56
Today Daily Change %-0.51
Today daily open110.64
 
Trends
Daily SMA20110.63
Daily SMA50109.85
Daily SMA100109.29
Daily SMA200106.84
 
Levels
Previous Daily High110.65
Previous Daily Low110.2
Previous Weekly High111.19
Previous Weekly Low109.53
Previous Monthly High111.12
Previous Monthly Low109.19
Daily Fibonacci 38.2%110.48
Daily Fibonacci 61.8%110.37
Daily Pivot Point S1110.34
Daily Pivot Point S2110.05
Daily Pivot Point S3109.9
Daily Pivot Point R1110.79
Daily Pivot Point R2110.94
Daily Pivot Point R3111.24

Author

Matías Salord

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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