USD/JPY hits fresh daily lows under 104.00 on USD weakness
- Yen turns positive versus the US dollar on mixed financial markets.
- USD/JPY sideways, under the 20-day simple moving average.
The USD/JPY declined further and printed a fresh daily low at 103.91. As of writing, it trades around 104.00, in negative territory for the day weakens by a slide of the US dollar across the board.
The greenback lost momentum after the beginning of the American session. The DXY that peaked at 91.21 hours ago pulled back all the way back to 90.70, erasing daily gains. The greenback made a reversal against most of its rivals after equity prices found support and rebounded modestly.
In Wall Street, the Dow Jones drops by 0.45% and the Nasdaq gains by 0.45%. US yields are lower supporting gold and yen.
From a technical perspective, USD/JPY is trading sideways below the 20-day moving average that stands at 104.35. A daily close below 103.70 would suggest more losses ahead, probably targeting November lows at 103.15/20. On the upside, a consolidation clearly above 104.40 would point to a stronger US dollar.
Two downtrend lines stand around 105.05 and 105.20, while below, the USD/JPY the bias will point lower. A breakout above 105.20 would negate the bias favoring a recovery toward 106.00.
Technical levels to watch