USD/JPY falls further to 113.61, its lowest since 10 November
The weekly chart points out rather well the technical resistance faced by buyers and how they have failed once again in cracking the key upside levels over the past few weeks.
But compounding the latest drop today is the plunge in bond yields as well, with ECB rate hike bets being scrapped in Europe while Treasury yields are also falling sharply.
10-year yields in the US are now down by nearly 5 bps to 1.54% and that is keeping the pressure on yen pairs to the downside in European trading so far.
USD/JPY has just taken another knock from 113.85 to 113.61 and price action is now seeing sellers seize back near-term control, a risk highlighted earlier here.
The 61.8 retracement level of the November swing move higher stands at 113.58 and that is the next support region to watch but beyond that, sellers have a rather clear path to work with towards the 113.00 handle next.
The fall in the past hour also sees USD/JPY erase its gains this week and is now trading in the red with the weekly pivot seen @ 113.85.
