USD / JPY under pressure falls below 113.50 amid risk aversion

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  • 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.

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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%.

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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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