USD/JPY Current price: 111.80
The USD/JPY pair plunges alongside with equities, with US indexes poised to open sharply lower following the lead of their European counterparts. Political scandals in the US surrounding President Trump have took their toll on the greenback and boosted demand for safe-haven assets, resulting in the USD/JPY pair falling down to its lowest in two weeks, now around 111.80 and poised to extend its decline.
Treasury yields are sliding quickly towards multi-month lows, further fueling the pair’s decline as the 10-year note benchmark stands now at 2.27% after closing at 2.34% yesterday. In the 4 hour chart, the price has accelerated its decline after breaking below its 100 SMA, now trading also below a key Fibonacci level, the 38.2% retracement of the November/December rally at 112.00. In the same chart, technical indicators head sharply lower, now entering oversold territory, also favoring a downward extension. The pair has an immediate support at 111.60, with a break below it favoring an approach to the 111.00 region during the upcoming hours.
Support levels: 111.60 111.25 110.90
Resistance levels: 112.00 112.45 112.80