USD/JPY prints fresh low and consolidates below 109.00
- USD/JPY unable to find support, remains under pressure.
- Yen gains momentums despite the rally in Wall Street.
The USD/JPY pair reached a fresh 4-month low after the beginning of the US session amid a recovery in US bonds. It bottomed at 108.58, hitting the lowest since September 11. The combination of a weak US dollar and yen demand is keeping the pair under pressure, below 109.00.
US Treasury Secretary Mnuchin fueled the decline of the US dollar earlier today, when he welcomed the weakness of the dollar. Following the ECB meeting, USD/JPY extended the slide, although, at a slow pace and continued to move with a negative tone even after equity prices in Wall Street reached new all-time-highs.
The US Dollar Index dropped to 88.24, the lowest since 2014 and it was hovering near the lows, facing pressure. In Wall Street, the Dow Jones was up 0.67% above 26,400 (new record highs).
Technical levels to watch
USD/JPY was hovering near 108.70, inside a range between daily lows and 108.75. Volatility eased after the London fix and the pair held at daily lows, consolidating losses. The dollar was about to post the third consecutive decline.
To the downside, immediate support is seen around daily lows at 108.55/60, followed by 108.20 (Aug 29 low), 108.00 and 107.70. On the upside, short-term resistance levels could be seen at 108.95 (20-hour moving average), 109.25 and 109.45 (Jan 25 high).