- Japanese Yen gains momentum as US Yields and Wall Street futures drop.
- US Industrial Production stagnates in February against expectations of a 0.2% increase.
- USD/JPY heads for the third weekly loss in a row, and to the lowest daily close in a month.
The USD/JPY dropped further, falling to as low as 131.99, as Treasury Bonds rally. A firm break below 132.00 could trigger an acceleration to the downside.
Optimism fades, yen emerges
US yields are falling on Friday. The US 10-year yield dropped to 3.45% while the 2-year yield stands at 4.06%, down 2.40%, for the day. The decline in yields takes place as US stocks opened lower as markets remain anxious.
Data released in the US showed Industrial Production rose 0% in February against expectations of a 0.2% increase. January’s numbers were revised higher from 0% to 0.3%. Capacity Utilization remains at 78%. Later on Friday, the University of Michigan will release its Consumer Sentiment report.
Lower yields and a decline in stocks in boosting the Japanese Yen across the board. USD/JPY lost more than a hundred pips during the last three hours. The pair fell from above 133.00 to 131.99.
As of writing, USD/JPY trades at 132.30, under pressure and looking at the 132.00 mark. A consolidation below would point to further weakness. The next strong barrier is seen at 130.60.
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