USD/JPY extends the drop below 103.00

The Japanese Yen is gathering further steam today, now sending USD/JPY more than 2% lower to the 102.70 area.

USD/JPY offered on data, BoJ

Spot is accelerating its decline to 2-week lows in the 102.60 area after US Consumer Confidence tracked by the Reuters/Michigan index has missed expectations for the current month. The results add to the already growing selling mood around the greenback following today’s Q2 GDP miss.

Adding to the downside, the demand for the safe haven JPY has accelerated after the BoJ meeting has come in short of expectations and despite Governor Kuroda will review the current QQE programme.

USD/JPY levels to consider

As of writing the pair is losing 2.51% at 102.64 and a breakdown of 102.29 (61.8% Fibo of 99.08-107.48) would open the door to 100.88 (78.6% Fibo of 99.08-107.48) and then 100.02 (low Jul.8). On the upside, the initial hurdle aligns at 105.95 (55-day sma) followed by 107.48 (high Jul.21) and finally 107.83 (100-day sma).