USD/JPY to post lowest close since December 2014

USD/JPY attempted to recover ground but the upside was short-lived and the pair is back near the 115.00 area. The pair bottomed today at 115.16, hitting the lowest level since November 2014.

USD/JPY unable to recover

From the lows, the pair bounced to the upside, but it turned again to the downside after reaching 115.85. Currently trades at 115.40/50, 150 pips below Friday’s closing price.

The yen is about to post the fifth daily gains out of the last six trading days. The pair lost more than 600 pips since the beginning of the day. Today the Japanese currency is among the top performers boosted by risk aversion.

European markets ended sharply lower and in Wall Street the Dow Jones is falling 2.39% and the Nasdaq declines 3.23%. US bonds are rising considerably with the 10-year yield at 1.74%.

More declines?

From a technical perspective a consolidation below 116.00 could open the doors for more declines. The area around 116.00 capped the decline during the past 13 months and USD/JPY failed to post a daily close under that level.

So far today, the pair is consolidating near 115.00 and it could confirm the break of an important medium-term support area.