- The yen is favored by a context of risk aversion.
- USD / JPY tests the 108.50 support, clears Monday’s gains.
From the middle of the European session, USD / JPY is steadily retreating. It has just marked lows for the day at 108.50, falling close to Monday’s floor of 108.45. LThe fall occurs in a context of declines in stock markets throughout the world.
The yen is among the best performing currencies in recent hours. At the same time, Wall Street futures points to an opening with a fall of more than 1.50% on the Nasdaq and 0.90% on the S&P 500. In Europe, the main markets fell more than 2%.
Despite the negative climate, Treasuries are down modestly. The 10-year rate is 1.60%. This behavior in public securities possibly explains that the decline in the USD / JPY is being limited.
A confirmation of USD / JPY below 108.50, would leave the dollar weak. Below the next support is 108.30 / 35 and then 107.95. In the opposite direction, the strong resistance zone is seen around 109.00. If the dollar asserts itself clearly above, it could remove the tone of weakness in the very short term.
Technical levels
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