USD/JPY tumbles to 6-day lows on risk aversion

  • Yen gains momentum amid risk aversion. 
  • Trade war concerns and more potential changes in Trump’s administration weighed on sentiment. 
  • US data: retail sales disappoint with another slide while PPI rises 0.2%. 

USD/JPY broke below 106.30 and dropped to 106.04, reaching the lowest level since last Thursday. The pair was holding near the lows with the bearish tone intact. 

The yen climbed across the board on the back of risk aversion amid fears of a trade war and concerns about Trump’s cabinet. The Dow Jones was falling almost 250 points after opening the day in green. The S&P 500 was down 0.40%. US bond were rising sharply pushing yields to the downside. 

Data released earlier today, showed that retail sales contracted 0.1% in February (against expectation of a 0.3% gain) while core sales climbed 0.2%. The Producer Price Index rose 0.2% above the 0.1% expected (2.8% annual rate). The US dollar weakened immediately after the report but then recovered the lost ground. It was among the top performer of the US session, excluding the yen. 

Technical levels 

To the downside, support levels are seen at 106.00, 105.85 and 105.45. On the upside, immediate resistance is now seen 106.30 (previous daily low) followed by 106.70 (daily high) and 106.95/00 (Mar 9 & 12 high). 

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 securities. 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 Forex 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.