USD/JPY tumbles toward 108.00 on lower US yields
- US Dollar falls across the board as US yields hit fresh lows.
- USD/JPY turns negative after being unable to break 108.30 and the 20-day SMA.
The USD/JPY pair dropped below Asian session lows and fell to 108.04. As of writing it was trading at 108.05/10 with the negative tone intact. Earlier today, the pair was unable to break above the 108.30 area that became a strong resistance.
The move lower took place amid a decline in US yields and also as equity prices in Wall Street extended losses. The 10-year yield fell to 2.07%, the lowest since July 11. The DOW JONES was falling 0.15% and the NASDAQ 0.17%.
Another driver was the decline of the US Dollar over the last hours across the board. The DXY was falling 0.18% at 97.20, trimming one-third of yesterday’s gains.
Levels to watch
If the decline in USD/JPY continues, it might test the 108.00 area. Below the next critical level is 107.80 (weekly lows); a break lower could clear the way to more losses. On the upside, the 20-day moving average at 108.20 and 108.30 (daily high) form a barrier that if broken, should lead to further USD strength.
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.
