The flight to safety pushed the Treasury prices higher (yields lower) and the USD/JPY pair to a session low of 116.56 levels.
Classic risk-off action in FX markets
The FX markets are witnessing a classic risk-off action. The greenback is down against the traditional safe havens like Gold and Yen. Meanwhile, the safe have appeal of the treasuries is ensuring the greenback stays upbeat against risk currencies.
Later in the day, the spot remains at the mercy of the overall market sentiment. The pair is currently trading around 116.70 levels.
USD/JPY Technical Levels
The immediate support is seen at 116.53 (Feb 4 low), which if taken out shall open doors for a drop to 116.29 (Friday’s low). A break lower would expose 116.00 handle. On the other side, resistance is seen at 117.53 (daily high), above which the spot could test 118.02 (hourly 10-MA). A break higher could see the pair test 118.30 (23.6% of May 2015 high-Jan 2016 low).
(Market News Provided by FXstreet)