- Treasury yields move away from highs weakening USD / JPY.
- Fall in equity markets favor the yen.
The USD / JPY changed the trend of the day and went from trading at highs since Thursday at 105.84 to falling a zone close to Friday’s lows. It hit the low of the day at 105.29 and is trading at 105.35, in negative territory for the day.
The price remains close to the 105.25 / 30 area, which is a relevant support and if it gives way, it would point to more weakness ahead. In the opposite direction, the first resistance can be seen around 105.55, where the 20-hour moving average is passing. If the price consolidates above 105.80, the dollar would be positioned for a bullish extension.
The The decline from the peak coincided with a pullback in Treasury yields from the day’s highs and a drop in stocks. The 10-year rate fell to 1.33%, after being close to 1.40%. As far as Wall Street is concerned, the Dow Jones is falling 0.53% and the Nasdaq 1.25%:
Another negative factor for USD / JPY is the dollar weakness. The dollar index (DXY) touched 90.14, the lowest level in nearly a week. The greenback fell against the main currencies above all, since it is appreciating against the emerging ones, favored by risk aversion.
Technical levels
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