“¢ The JPY benefitted from the global flight to safety and exerted some heavy pressure.
“¢ A slump in the US bond yields undermined the USD and did little to lend any support.
“¢ Better than expected US economic releases helped limit further losses, at least for now.
The USD/JPY pair now seems to have entered a bearish consolidation phase and was seen oscillating near the lower end of its daily trading range, or four-month lows.
Having faced rejection ahead of the key 110.00 psychological mark on Thursday, the pair came under some intense selling pressure on the last trading day of the week and kept losing ground amid the global flight to safety.
The global risk sentiment took a sharp knock after the US President Donald Trump promised to impose 5% tariffs on all Mexican goods and provided a strong boost to perceived safe-haven currencies – like the Japanese Yen.
A fresh wave of global risk-aversion trade, as depicted by a sea of red across equity markets, was further reinforced by a slump in the US Treasury bond yields, which weighed on the US Dollar and did little to lend any support.
Meanwhile, slightly better than expected US economic releases – personal income/spending data and the core PCE price index, failed to provide any impetus, albeit helped limit further losses, at least for the time being.
Technical levels to watch
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