USD/JPY extends slide to the 109.50 area amid risk aversion
- Japanese yen rises across the board as the Dow Jones tumbles 1.47%.
- USD/JPY drops more than a hundred pips on the worst day in weeks.
The USD/JPY pair dropped further and reached a fresh weekly low at 109.52. It remains under pressure, near the lows amid risk aversion.
Stocks tumble, yields stabilize
In Wall Street, equity prices are falling sharply following what happened in Europe. The Dow Jones is falling by 1.43% and the Nasdaq 1.65%. Main European indices are falling by more than 2%.
The negative tone among investors if favoring the demand for the Japanese yen that is the best G10 performer. Also, the decline in government bond yields is supporting the yen.
The USD/JPY is down more than a hundred pips, on the worst day in weeks. The slide is now testing the 109.50/55 area, slightly below the 55-day simple moving average. The negative impulse gained steam after breaking a short-term uptrend line. The pair is about to post the lowest close in a month. The next strong support is seen around 109.15 (June low). A recovery will face resistance at 109.95 and then at 110.40.
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.
