USD/JPY plummets to fresh six-week lows, fast approaching 110.00 mark

   “¢   Reviving safe-haven demand boosts JPY and prompts aggressive selling.
   “¢   Bears further take cues from the ongoing slump in the US bond yields.

The USD/JPY pair plunged to near six-week lows in the last hour, with bears now eyeing a move towards challenging the key 110.00 psychological mark.

The Japanese Yen’s safe-haven bid picked up the pace following the release of yet another awful Euro-zone manufacturing PMI prints, which resurfaced concerns about the health of the global economy and triggered a sharp decline in European stocks.

The intraday bearish slide accelerated further, rather took cues from tumbling US Treasury bond yields, largely offsetting the US President Donald Trump’s optimistic trade-related comments that negotiations with China are going along very well.  

Meanwhile, the prevalent bid tone surrounding the US Dollar did little to ease the bearish pressure while possibilities of some short-term trading stops being triggered on a sustained weakness below horizontal support near mid-110.00s seems to have further aggravated the selling pressure.

In absence of any major market moving economic releases, the broader market risk-sentiment/the US bond yield dynamics might continue to act as key determinants of the pair’s momentum on the last trading day of the week.  

Technical levels to watch