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USD/JPY plummets below 110.0 as US dollar retreats

  • USD/JPY extends the previous session’s losses on Friday. 
  • Lower US Treasury yields undermine the demand for the US dollar.
  • Yen gains on its safe-haven appeal amid risk aversion.

USD/JPY edges lower on Friday in the initial Asian session following the previous day’s sharp downside movement. The pair fell more than 100-pips as risk sentiment sours on the US and global growth jitters. 

At the time of writing, USD/JPY is trading at 109.78, down 0.02% for the day.

The US Dollar Index (DXY) retreated from its 13-week high following the fall in the US 10-year benchmark yields as growth concerns lingered on over a slowdown in the  US and global growth.

The US Treasury yields edged lower 1.30% on the expectations that Fed will not tighten monetary policy soon.

The US Initial Jobless Claims came at 373 K, above the market forecast. The readings showed that the labor market recovery remained far from the Fed's expectation.

Lower bond yields and soft economic data built pressure on the US dollar. 

On the other hand, the Japanese yen gained on the global equity sell off. The negative sentiments around the equities and government bond yields supported the safer assets.

As for now, investors are waiting for the US Wholesale Inventories data to gauge the market sentiment.

USD/JPY additional levels

USD/JPY

Overview
Today last price109.78
Today Daily Change-0.84
Today Daily Change %-0.76
Today daily open110.62
 
Trends
Daily SMA20110.54
Daily SMA50109.77
Daily SMA100109.1
Daily SMA200106.75
 
Levels
Previous Daily High110.82
Previous Daily Low110.4
Previous Weekly High111.66
Previous Weekly Low110.42
Previous Monthly High111.12
Previous Monthly Low109.19
Daily Fibonacci 38.2%110.65
Daily Fibonacci 61.8%110.56
Daily Pivot Point S1110.41
Daily Pivot Point S2110.19
Daily Pivot Point S3109.99
Daily Pivot Point R1110.83
Daily Pivot Point R2111.03
Daily Pivot Point R3111.24

Author

Rekha Chauhan

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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