USD/JPY drops further to 112.50, USD selling intensifies

• DXY hits fresh 3-month lows of 92.11.
• Risk-aversion seeps back.

A fresh selling-wave gripped the US dollar once again, accelerating the declines in the USD/JPY pair towards the midpoint of the 112 handle.

USD/JPY: Range-break awaited

The US dollar remains relentlessly sold-off into the weakness seen in the 10-year Treasury yields, as they extend their retreat from nine-month tops of 2.504 reached last week. The dip in Treasury yields reflects the increased uncertainty over the Fed rate hike expectations, as we head into 2018.

Meanwhile, on the JPY-side of the story, the negative performance seen on the European equities fuel the demand for the safe-haven Yen, which adds to the weight on the spot. Further, upbeat Japanese macro news also continues to lend support to the domestic currency, now dragging the pair deeper into the red zone.

The US economic calendar remains absolutely dry and hence, the USD price-action and risk trends will be closely eyed for fresh momentum.

USD/JPY Technical View

The AceTrader Team, explains, “Expect the price to trade with a soft undertone n ratchet lower in Europe, so trading from short side is favoured. Offers are tipped at 112.90/00 with the stop above 113.10. Some bids are noted at 112.70-60 with stops below 112.50.”