- Dollar decline leaves USD / JPY weak, DXY at lows since 2018.
- USD / JPY heading for the lowest daily close in a month.
USD / JPY extended the slide and hit a five-week lows, dipping to 103.60. The decline occurs in a context of general weakness of the dollar and despite the rise in the stock markets throughout the world.
The pair is trading at 103.70, on its way to having the lowest daily close in a month. If it moves away significantly to the low of 103.70, it would be vulnerable to further losses. The next target could be at November lows at 103.16.
The yen is shown without significant changes on other fronts. The main factor behind the USD / JPY pullback is the dollar’s weakness. The greenback loses ground on all fronts, possibly affected by the rise in stock markets. Wall Street futures point to an open with gains in the order of 0.65% average. The dollar index (DXY) is at its lowest since 2018, below 90.50.
Neither the rise in the yields of the US Treasury bonds have managed to stop the fall of the dollar. He may have helped moderate it, but he couldn’t change the tone. Several crosses are close to relevant technical levels, such as EUR / USD and recent highs. The breakdown of these would point to further weakness ahead for the US currency.
Technical levels
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