• Concerns about the new COVID variant triggers sell off across financial markets.
  • Japanese yen among top performers boosted by risk aversion and lower US yields

The USD/JPY is falling sharply on Friday, having the worst day in months after fears over a new COVID-19 variant trigger sharp declines across financial markets. The pair is losing more than 200 pips, trading around 113.30/40, the lowest level since November 10.

The pair opened the slightly below 115.50 and near multi-year highs but then it started to move lower and accelerated again during US hours boosted by risk aversion.

In Wall Street, the Dow Jones is losing 2.60% and the Nasdaq 1.65%. In Europe main indices lost more than 3%. The announcement of travel restriction from Africa to Europe weighed damaged considerably market sentiment boosting the demand for safe-haven assets.

US yields tumbled favoring even more the Japanese yen. The US 10-year that a few sessions ago was flirting with 1.70% is testing 1.50%, the 30-year yield dropped from above 2% to 1.85%.

If USD/JPY consolidates below 113.40, more losses seem likely. The next support level is seen around 113.20 that protects 113.00. Below attention would turn to the November low at 112.70.

Technical levels


Today last price 113.72
Today Daily Change -1.64
Today Daily Change % -1.42
Today daily open 115.36
Daily SMA20 114.16
Daily SMA50 113.01
Daily SMA100 111.46
Daily SMA200 110.3
Previous Daily High 115.46
Previous Daily Low 115.24
Previous Weekly High 114.97
Previous Weekly Low 113.59
Previous Monthly High 114.7
Previous Monthly Low 110.82
Daily Fibonacci 38.2% 115.33
Daily Fibonacci 61.8% 115.38
Daily Pivot Point S1 115.25
Daily Pivot Point S2 115.14
Daily Pivot Point S3 115.04
Daily Pivot Point R1 115.47
Daily Pivot Point R2 115.57
Daily Pivot Point R3 115.68



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