USD/JPY Unstoppable Hits Fresh 18-Month Lows
The yen gained momentum across the board and pushed USD/JPY
below 106.89 (previous low) and dropped to 106.61, hitting the lowest
level since October 2014. The pair remains near the lows, holding
bearish momentum despite short-term oversold readings in various
technical indicators. During the last minutes, it has been trading
between 106.60 and 106.80.
Greenback remains weak in the market particularly against European currencies while the yen regained strength as stocks in Europe and in Wall Street extended losses. The FTSE 100 is falling 0.90% and the DAX losses 2.70%; in the US the Dow Jones drops 0.85% and the Nasdaq 1.15%.
USD/JPY add losses
The pair increased weekly losses and is now down almost 500 pips from the level it had before Thursday’s decision of the Bank of Japan to leave monetary policy unchanged.
So far the weekly result is the worst for the US dollar since at least 2013, losing around 3.60%. For the second time since the beginning of the year, USD/JPY is about to end a month with a decline of more than 500 pips.