USD/JPY drops to fresh lows near 119.30

FXStreet (Mumbai) - The US dollar snapped its side trend and turned in the negative territory versus the Japanese yen in the European session, knocking-off USD/JPY to fresh session lows, as risk-off moods emerged in the markets amid uncertainties surrounding UK elections, boosting demand for the Japanese currency as a safe haven.

USD/JPY drops from 119.45

Currently, the USD/JPY pair trades -0.13% lower at 119.30, having posted fresh session lows at 119.26 levels some minutes ago. The USD/JPY pair resumed its downside momentum backed by weak ADP employment data and Yellen’s comments as markets await US unemployment claims for fresh update on the US jobs market scenario.

Moreover, markets remain nervous awaiting outcome of the UK’s general elections which fuelled risk-off environment benefitting the safe-haven appeal in yen.

Looking ahead, markets now turn their focus towards today’s US jobless claims while the critical non-farm payrolls figures are due on Friday. NFP is expected to post a 230,000 gain, along with the unemployment rate, which is predicted to soften to 5.4% from 5.5%.

USD/JPY Technical Levels

To the upside, the next resistance is located at 120 levels and above which it could extend gains 120.30 (May 1 High) levels. To the downside immediate support might be located at 119.18 (May 6 Low) below that at 119 levels.

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