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.

Matías Salord FXStreet

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.

USD/JPY

Overview
Today last price	108.1
Today Daily Change	-0.14
Today Daily Change %	-0.13
Today daily open	108.24

Trends
Daily SMA20	107.99
Daily SMA50	108.7
Daily SMA100	110.03
Daily SMA200	110.72

Levels
Previous Daily High	108.38
Previous Daily Low	107.82
Previous Weekly High	109
Previous Weekly Low	107.8
Previous Monthly High	108.8
Previous Monthly Low	106.78
Daily Fibonacci 38.2%	108.17
Daily Fibonacci 61.8%	108.03
Daily Pivot Point S1	107.92
Daily Pivot Point S2	107.59
Daily Pivot Point S3	107.36
Daily Pivot Point R1	108.47
Daily Pivot Point R2	108.7
Daily Pivot Point R3	109.03

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.

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