USD/JPY drops below 112.00 as equity prices tumble in Wall Street

The yen gained momentum across the board during the last hours as US stocks turned negative and accelerated to the downside. USD/JPY broke below 112.00 and fell to 111.80, hitting the lowest since February 28. 

The pair remains near the lows, holding a bearish tone and headed toward the second lowest close of the year and the sixth daily decline in a row. 

The Japanese currency strengthened amid a rally in US bond that sent the 10-year yield to 2.430%, the lowest since March 1. In Wall Street, after a positive opening, the Dow Jones was falling 0.60% and the Nasdaq was losing 0.94%. 

Technical levels 

To the downside, support levels might be located at 111.80 (daily low), followed by 111.55/60 (Feb 7 low) and 111.00. On the upside, resistance might be seen at 112.25 (Asian session low), 112.50 (20-hour moving average) and 112.85/90 (Mar 20 & 21 high).