USD/JPY plummets to 109.00 neighborhood, 7-month lows


   •  Global growth concerns continue to benefit JPY's safe-haven status.
   •  The USD bulls remain on the defensive and do little to lend support.

The global flight to safety continued benefitting the Japanese Yen and dragged the USD/JPY pair to the 109.00 neighborhood, or seven-month lows, in the last hour.

The pair kicked off the New Year on a weaker note and remained heavily offered for the fourth consecutive session amid the prevalent risk-off mood, especially after today's disappointing Chinese macro data.

The Caixin Chinese Manufacturing PMI fell into contraction territory for the first time since early May 2017 and further fueled concerns about global economic growth, triggering a fresh wave of risk-aversion trade.

Adding to this, expectations of a dovish Fed in 2019, coupled with partial US government shutdown kept the US Dollar bulls on the defensive and further collaborated to the pair's ongoing downfall. 

Meanwhile, a mildly negative tone around the US Treasury bond yields also did little to inspire the bulls and failed to lend any support, or stall the slide to the lowest level since early June 2018.

It would now be interesting to see if the pair is able to find any buying interest at lower levels or continues with its bearish trajectory, despite near-term oversold conditions.

Technical levels to watch

Weakness below the 109.00 handle is likely to accelerate the fall towards 108.75 intermediate support before the pair eventually drops to test the 108.40-35 region. On the flip side, any recovery move might now confront some fresh supply near the 109.65-70 region, above which the pair is likely to make an attempt towards reclaiming the key 110.00 psychological mark.
 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures