USD/JPY falls to two-week lows under 109.30 as US yields tumble

  • Japanese yen gains momentum across the board on lower US yields.
  • USD/JPY heads for the lowest close since late May.
  • Data from the US below expectations, NFP to be released on Friday.

The USD/JPY dropped further during the American session and bottomed at 109.22, the lowest intraday level since July 19. The pair remains near the bottom, under pressure amid a stronger Japanese yen across the board.

The yen is among the top performers, boosted by a rally in US bonds. The US 10-year yield is down almost 4% and recently reached at 1.179%, the lowest since July 20. At the same time, equity prices in the US are up by 0.45% on average.

Economic data from the US came in below expectations. The ISM manufacturing index dropped from 60.6 to 59.5, below the 60.9 of market consensus. The employment index rose to 52.9, ahead of Friday’s Nonfarm Payroll report.

From a technical perspective, a consolidation below 109.30 should keep the bearish momentum in place in USD/JPY, with doors open to a decline to test the July low (109.06); below, the next support stands at 108.55. On the upside, now 109.40 is the immediate resistance, followed by 109.65 and 109.75 (Aug 2 high).

Technical levels


Today last price 109.27
Today Daily Change -0.42
Today Daily Change % -0.38
Today daily open 109.69
Daily SMA20 110.12
Daily SMA50 110.08
Daily SMA100 109.6
Daily SMA200 107.14
Previous Daily High 109.83
Previous Daily Low 109.36
Previous Weekly High 110.58
Previous Weekly Low 109.36
Previous Monthly High 111.66
Previous Monthly Low 109.06
Daily Fibonacci 38.2% 109.65
Daily Fibonacci 61.8% 109.54
Daily Pivot Point S1 109.43
Daily Pivot Point S2 109.16
Daily Pivot Point S3 108.96
Daily Pivot Point R1 109.89
Daily Pivot Point R2 110.09
Daily Pivot Point R3 110.36



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