USD/JPY tumbles to lows near 108.70

The greenback is now accelerating its daily correction lower, dragging USD/JPY to test fresh lows in the 108.70 region.

USD/JPY challenges lows near 108.60

Spot is coming down propelled by the increasing downside pressure around US yields, where yields of the 10-year reference are probing daily lows around 2.18%.

In addition, the US Dollar Index (DXY) remains on the defensive, eroding initial gains and breaking below the critical 93.00 support, recording at the same time fresh multi-day lows.

Data wise today, US Chicago Fed National Activity index dropped to -0.01 in July from June’s 0.16. All the attention this week, however, should be on the upcoming Jackson Hole Symposium on Thursday and Friday.

USD/JPY levels to consider

As of writing the pair is gaining 0.43% at 108.72 and a breach of 108.60 (low Aug.18) would aim for 108.11 (low Apr.17) and finally 102.54 (low Nov.3 2016). On the upside, the immediate hurdle emerges at 109.68 (10-day sma) followed by 110.10 (23.6% Fibo of 114.51-108.60) and then 110.27 (21-day sma).