USD/JPY extends slide, approaches 112.00

The US dollar dropped further across the board while the Japanese yen remained resilient in the market, despite rising stocks in Wall Street. USD/JPY fell further and printed a fresh daily low at 112.30. Price remains near the lows, holding a bearish tone. 

Stocks up, yields down

The yen strengthened against the US dollar, as US bond yields turned lower, following the release of the US employment report. The NFP data surpassed expectations but details regarding revisions and wage growth affected the US dollar. 

While the Dow Jones is up 0.80%, above 20,000 and the Nasdaq gains 0.38%, the 10-year yield fell to 2.429%, reaching the lowest in a week. 

NFP: Wage numbers not helpful but case for rate hike remains strong - ING

Levels to watch 

USD/JPY dropped back below the 112.50 area and is looking at the 112.00 handle, were weekly lows are located. A break lower, could increase the bearish pressure; below that area support level might be seen at 111.70 and then 111.35/40 (Nov 22 high / Nov 28 low). 

On the opposite direction, immediate resistance might now be seen at 112.95 (20-hour moving average), 113.40/45 (daily high) and 113.95 (Jan 31, Feb 1 highs).