- The Japanese yen remains among the worst performers even as US stocks tumble.
- USD / JPY wins for the third day in a row.
The pair USD/JPY it rallied even higher during the US session, driven by higher US yields and hit 106.28, the highest level since September 10. On Wall Street, stock indices are spreading losses.
Stocks down, also JPY
USD / JPY is trading at daily highs above 106.20, supported by higher returns. During the past few hours, yields retreated modestly, but the pair still managed to hit new highs even as share prices extended losses.
On Wall Street, the Dow Jones falls 0.89% and the Nasdaq falls 2.01%. Deteriorating market sentiment is not pushing the Japanese yen against the US dollar. The DXY is far from lows near 89.90, rising due to risk aversion. Earlier on Thursday, the index bottomed at 89.67, the lowest level since Jan.8.
From a technical perspective, the bullish outlook on USD / JPY remains strong. Immediate resistance lies at 106.30 and above 106.60. On the other hand, support could be seen at 105.75, followed by 105.50. A daily close below 105.25 (20-day moving average) would ease the positive momentum.