USD/JPY drops below 109.00 as Wall Street extends losses

• Yen rises across the board amid risk aversion. 
• USD/JPY hits lowest since April 25 and erases weekly gains.

The Japanese yen gained momentum across the board amid a decline in equity prices and falling US yields. USD/JPY continued to decline after reaching yesterday levels on top of 110.00 and recently printed a fresh low under 109.00. 

The pair is falling more than 80 pips today and is having the worst performance in months, making a strong reversal from 110.00. 

The yen continued to rose against the US dollar despite US economic data. During the last minutes, the boost came from the decline in equity prices. The Dow Jones was falling 1.35% at 4-week lows. 

Technical levels 

To the downside, below 109.00 support levels might be located at 108.95 (Apr 27 low), 108.50/55 (Apr 24 low) and 108.30. On the upside, resistance now might be seen at 109.25, 109.50/55 (Asian session low / 20-hour moving average) and 109.75.