USD/JPY slumps to 6-month lows near 109.70

After recovering above the 110 handle in the early NA session, the USD/JPY pair, once again, turned south and extended its losses. The pair, which touched its lowest level since late June at 109.66, was last seen trading at 109.70, losing 0.52% on the day. 

Although a rebound seen in the major equity indexes in the U.S. made it difficult for the safe-haven JPY to continue to gather strength, a new wave of USD-selling caused the pair to lose its traction. A more-than-1% fall that dragged the 10-year T-bond yield to its lowest level since February around 2.7% seems to be weighing on the greenback in the last trading day of the year. At the moment, the DXY is down 0.25% on the day at 96.15.

The only data from the U.S. today showed that the business activity in the manufacturing sector of Texas lost momentum in December with the headline activity index plummeting to -5.1 from 17.6 in November.

Technical levels to consider