- Concern for a new variant of COVID generates a sharp decline in the markets.
- The Japanese yen among the top performers driven by risk aversion and falling US yields.
The USD/JPY is falling sharply on Friday, having the worst day in months after fears about a new variant of COVID-19 triggered sharp declines in financial markets. The pair is losing more than 200 pips, trading around 113.30 / 40, the lowest level since November 10.
The pair opened slightly below 115.50 and near multi-year highs, but then began to move lower and accelerated again during US hours driven by risk aversion.
On Wall Street, the Dow Jones lost 2.60% and the Nasdaq 1.65%. In Europe, the main indices lost more than 3%. The announcement of the travel restriction from Africa to Europe significantly affected market sentiment, boosting demand for safe haven assets.
US yields fell further favoring the Japanese yen. The American decade that a few sessions ago flirting with 1.70% is testing 1.50%, the 30-year yield is down more than 2% to 1.85%.
If USD / JPY consolidates below 113.40, further losses seem likely. The next level of support is seen around 113.20 which protects 113.00. Below attention would return to the November low at 112.70.
Technical levels
USD/JPY
| Panorama | |
|---|---|
| Today’s Last Price | 113.5 |
| Today’s Daily Change | -1.86 |
| Today’s Daily Change% | -1.61 |
| Today’s Daily Opening | 115.36 |
| Trends | |
|---|---|
| SMA of 20 Daily | 114.16 |
| SMA of 50 Daily | 113.01 |
| SMA of 100 Daily | 111.46 |
| 200 SMA Daily | 110.3 |
| Levels | |
|---|---|
| Daily Previous Maximum | 115.46 |
| Daily Previous Minimum | 115.24 |
| Weekly Preview Maximum | 114.97 |
| Weekly Prior Minimum | 113.59 |
| Monthly Previous Maximum | 114.7 |
| Minimum Previous Monthly | 110.82 |
| Daily Fibonacci 38.2% | 115.33 |
| Daily Fibonacci 61.8% | 115.38 |
| Daily Pivot Point S1 | 115.25 |
| Daily Pivot Point S2 | 115.14 |
| Daily Pivot Point S3 | 115.04 |
| Daily Pivot Point R1 | 115.47 |
| Daily Pivot Point R2 | 115.57 |
| Daily Pivot Point R3 | 115.68 |
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