USD/JPY tumbles to test 132.00 as US yields slide
- Japanese Yen gains momentum as US Yields and Wall Street futures drop.
- US Industrial Production stagnates in February against expectations of a 0.2% increase.
- USD/JPY heads for the third weekly loss in a row, and to the lowest daily close in a month.
The USD/JPY dropped further, falling to as low as 131.99, as Treasury Bonds rally. A firm break below 132.00 could trigger an acceleration to the downside.
Optimism fades, yen emerges
US yields are falling on Friday. The US 10-year yield dropped to 3.45% while the 2-year yield stands at 4.06%, down 2.40%, for the day. The decline in yields takes place as US stocks opened lower as markets remain anxious.
Data released in the US showed Industrial Production rose 0% in February against expectations of a 0.2% increase. January’s numbers were revised higher from 0% to 0.3%. Capacity Utilization remains at 78%. Later on Friday, the University of Michigan will release its Consumer Sentiment report.
Lower yields and a decline in stocks in boosting the Japanese Yen across the board. USD/JPY lost more than a hundred pips during the last three hours. The pair fell from above 133.00 to 131.99.
As of writing, USD/JPY trades at 132.30, under pressure and looking at the 132.00 mark. A consolidation below would point to further weakness. The next strong barrier is seen at 130.60.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
