USD/JPY extends slide to the 109.35 area

US Dollar drops into the London fix, DXY falls to 89.81.
USD/JPY corrects further lower after being rejected from above 110.00.

Matías Salord FXStreet

The USD/JPY broke below 109.60 and tumbled to 109.34, reaching the lowest level since Thursday. As of writing, it is trading slightly below 109.50, down 35 pips for the day.

The correction on Monday takes place after the US dollar was rejected from above 110.00. On Friday it peaked at 110.19, before bouncing to the downside. On Monday, price action remains limited amid a holiday in the US. Over the last hour, the greenback dropped across the board into the London fix.

Volatility is expected to remain low ahead of the Asian session. On Tuesday, the economic calendar shows PMIs as the key event of the day; regarding the week, attention is set on Friday’s NFP.

Economic numbers from the US are having a large impact on US yields, hence affecting USD/JPY. The 10-year yield closed lower last week below 1.60% and weighed on the greenback.

On the downside, the immediate support in USD/JPY is the 109.30 level followed by 109.00/05. On the upside, now 109.60 is a resistance level and then 109.75 before the 110.00 area.

Technical levels

USD/JPY

Overview
Today last price	109.42
Today Daily Change	-0.42
Today Daily Change %	-0.38
Today daily open	109.84

Trends
Daily SMA20	109.13
Daily SMA50	109.15
Daily SMA100	107.48
Daily SMA200	106.11

Levels
Previous Daily High	110.2
Previous Daily Low	109.74
Previous Weekly High	110.2
Previous Weekly Low	108.56
Previous Monthly High	110.85
Previous Monthly Low	107.48
Daily Fibonacci 38.2%	110.02
Daily Fibonacci 61.8%	109.92
Daily Pivot Point S1	109.65
Daily Pivot Point S2	109.47
Daily Pivot Point S3	109.2
Daily Pivot Point R1	110.11
Daily Pivot Point R2	110.38
Daily Pivot Point R3	110.56

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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