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USD/JPY tumbles to 108.00 as US dollar drops sharply

  • US Dollar tumbles across the board on Fed’s Bostic comments. 
  • Japanese yen gains momentum as US yields turn to the downside. 

The USD/JPY pair turned to the downside and lost more than 70 pips since the beginning of the US session. The pair broke key short-term technical supports and accelerated to the downside. It found support around the 108.00 area. 

Earlier today the pair was testing the 109.00 level but failed to break higher and lost strength. It started to correct lower on the back of a weaker US Dollar. The greenback extended losses after Atlanta Fed President Raphael Bostic mentioned that the Fed's policy could move in either direction. He was open to a rate cut if downside risk to the economy materialized. Those comments also triggered a rally in US bonds. The 10-year yield fell from 2.74% to 2.71%. 

The pair printed a fresh daily low at 108.04, the weakest since Tuesday. As of writing trades at 108.20/25. Despite moving off lows, the bearish pressure was still intense. 

USD/JPY Levels to watch

During the sharp slide from 109.00, USD/JPY broke a short-term uptrend line signaling that the bullish correction of the last four days could be over. The immediate support is the 108.00 zone, below another leg lower seem likely with a potential target above 107.50. To the upside, resistance levels might be located at 108.40 (Jan 8 low), followed by 108.75 and the 109.00 zone. 
 

 

USD/JPY

Overview:
    Today Last Price: 108.27
    Today Daily change: -50 pips
    Today Daily change %: -0.460%
    Today Daily Open: 108.77
Trends:
    Previous Daily SMA20: 110.78
    Previous Daily SMA50: 112.27
    Previous Daily SMA100: 112.25
    Previous Daily SMA200: 111.12
Levels:
    Previous Daily High: 109.09
    Previous Daily Low: 108.44
    Previous Weekly High: 110.48
    Previous Weekly Low: 104.75
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Previous Daily Fibonacci 38.2%: 108.84
    Previous Daily Fibonacci 61.8%: 108.69
    Previous Daily Pivot Point S1: 108.44
    Previous Daily Pivot Point S2: 108.11
    Previous Daily Pivot Point S3: 107.79
    Previous Daily Pivot Point R1: 109.09
    Previous Daily Pivot Point R2: 109.42
    Previous Daily Pivot Point R3: 109.74

 

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