- USD / JPY hits new lows, even as Wall Street moves away from lows.
- The US 10-year yield falls to 0.87%, the lowest since Dec. 1.
The USD/JPY it fell further and bottomed at 103.82, hitting the lowest level in a week. At time of writing, it is trading at 103.90 / 95, a 20 pip drop for the week. The Japanese currency is among the best performers on Friday, supported by deteriorating risk sentiment.
Wall Street indices are in negative territory but off lows. Despite the rebound, USD / JPY continued to trend downward. Falling US yields supported the yen. The US 10-year yield fell to 0.87%, the lowest since December 1. The Dow Jones is falling 0.15% and the Nasdaq 0.45%, moving away from lows but reflecting some aversion to risk.
The lack of agreement on Brexit and the fiscal stimulus in the US weighed on market sentiment. Looking at the data, the US Producer Price Index rose less than expected in November while the University of Michigan Consumer Sentiment Index rose to 81.4 above the market consensus 76.5.
USD / JPY remains in range
For the third week in a row, USD / JPY continues to trade sideways between 103.70 and 104.70. The main trend is bearish. A break above 104.70 would clear the way for a test of 105.00. If the dollar rises above 105.00, it could negate the bearish bias.
On the other hand, a firm break below 103.70 would add further downside pressure, exposing the November low at 103.15.
Technical levels
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