The greenback remained on back foot against its Japanese counterpart, with the USD/JPY pair extending Wednesday's rejection move from 115.00 mark and now slipping farther below 113.00 handle.
The ongoing downward spiral in the US treasury bond yields, and bearish tone around equity markets, are indicative of the cautious investors' sentiment, which tend to boost the Japanese Yen's safe-haven appeal and is weighing heavily on the major.
Moreover, possibilities of some stops getting triggered on a sustained break below 113.00 handle (weakness below 112.85 level) could have also collaborated towards accelerating the downslide during early NA session on Friday, to multi-day lows near 112.60-65 band.
In addition to this, the key US Dollar Index has also retreated from daily peaks and has failed to lend any immediate support for the major.
In absence of any market moving releases from the US, the pair remains at the mercy of broader market risk-sentiment and price-action surrounding the US treasury bond yields.
Valeria Bednarik, Chief Analyst at FXStreet notes, "from a technical point of view, the 1 hour chart shows that the price is back below the 100 and 200 SMAs, whilst the Momentum indicator heads sharply lower below its 100 level, as the RSI indicator consolidates around 28, supporting the ongoing downward move. In the 4 hours chart, the price has also broken below its moving averages, with the 100 SMA now capping the upside around 113.30, while technical indicators head sharply lower near oversold readings. A break below the 112.50 level, where the pair presents its 100 DMA, should fuel the slide towards 111.95, a major Fibonacci support, en route to 111.60, this month low."
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