USD/JPY at fresh daily lows as risk-off strengthens in Europe

FXStreet (Mumbai) - The risk-off mood in the European equities strengthened and led to a rise in demand for Yen, courtesy of which the USD/JPY pair dropped to a fresh session low of 119.40.

Retraced 61.8% of BOJ driven rally

At 119.45, the pair is trading comfortably below 119.71, which is 61.8% of the gains witnessed after BOJ’s negative rate surprise. The European stocks began the day on a softer note; however, the losses were moderate, until a fresh selling pressure pushed major indices lower by at least 1%.

Consequently, the safe haven JPY strengthened and the pair turned lower once again from 120.04 levels. Ahead in the day, the USD demand could be affected by the US ADP and ISM non-manufacturing report.

USD/JPY Technical Levels

The immediate support is seen at 119.20 (10-DMA), under which the spot could target 118.30 (23.6% of 125.856-115.97). On the other hand, a break above 119.75 (38.2% of 125.856-115.97) could open doors for a rise to 50-DMA at 120.25.