USD/JPY spikes down to new 5-month low on USD weakness

The recent comments by President Trump triggered a late USD sell-off, pushing the USD/JPY pair to a new multi-month low at 109.12. As of writing, the pair was losing 0.25% on the day at 109.35.

In an interview with The Wall Street Journal, Trump stated that a strong dollar would ultimately hurt the U.S. as it would be very hard to compete when you have a strong dollar, and other countries are devaluing their currency. He also said that he respects Fed Chairwoman Yellen but hasn't decided if he is going to reappoint her.

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The US Dollar Index fell off a cliff following the comments and touched its lowest level since March 31 at 100.19. At the moment, the index is down 0.4% at 100.22.

Technical outlook

The pair could face the initial support at 109 (psychological level) before aiming for 108.55 (Nov. 17 low) and 108 (psychological level). To the upside, resistances could be seen at 110 (psychological level) followed by 110.90/111.00 (20-DMA/psychological level) and 111.60 (Apr. 10 high).