FXStreet (Córdoba) – The yen gained momentum across the board as stocks in Wall Street reversed sharply and erased gains in a few minutes. USD/JPY broke a key technical support and recently printed a fresh low at 121.56, hitting levels last seen back in early November.
The pair currently trades at 121.60/65 and is holding a bearish tone. It stands more than a hundred pips below the level it closed yesterday, suffering the worst daily decline in two months.
In Wall Street, the Dow Jones is now in negative territory down 0.60% while the Nasdaq falls 1.65%. US bond yields pulled back, with the 10-year around 2.238% after hitting 2.270%.
USD/JPY breaks key support
The pair broke the 122.20 area that capped the decline several times in November and also last week. Since November it was moving in a range between 122.20 and 123.70. Today USD/JPY is breaking to the downside, giving bearish technical signals.
The pair currently is also under the 100 and 200-day MA. Potential support levels might lie at 121.45/50 (Oct highs) and 120.50 (Oct 2 & 5 high).
——-
What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 – The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.
——-
(Market News Provided by FXstreet)