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

Dollar ticks higher as most Fed officials see cuts as a mid-cycle adjustment

The Minutes of the latest Federal Reserve meeting are out, giving the greenback a modest lift against most major rivals. Policymakers concerned about the efficacy of QE. EUR/USD trading below 1.1100.

EUR/USD News

GBP/USD holds below 1.2150 post-Fed, Merkel-Johnson meeting

GBP/USD is trading with a heavy tone after German Chancellor Angela Merkel gave UK PM Boris Jonson to come out with a solution to avert a no-deal Brexit in the next 30 days.

GBP/USD News

USD/JPY: fundamental background keeps favoring the yen

Equities bounced, but the USD/JPY pair ignored the recovery. US Treasury yields finished the day little changed after FOMC’s Minutes. USD/JPY continues consolidating between Fibonacci levels, upside limited by 106.65.

USD/JPY News

Gold holds in bullish territory, unfazed by FOMC minutes

Gold prices are trapped between the recent 13th august highs and lows of the $1,530s and $1,479s, unfazed by the as expected Federal Open Market Committee minutes which did little to sway the market's opinion that the Federal Reserve will cut interest rates again.

Gold News

Why is the dollar not stronger and why is the euro not weaker?

We can easily make the argument that the US is not going into recession, despite the doomsayers. They are out in force, whether their credibility rests on getting one or two things right in the past, or cycle ideas, or what passes for logic.

Read more

MAJORS

Cryptocurrencies

Signatures


  •  
  •  
  •  
  •  
  •