USD/JPY erases gains and hits fresh lows under 109.00

USD/JPY rose toward daily highs after US CPI data but then turned to the downsides and it has been falling constantly since then. Recently it dropped below 109.00 and currently trades at 108.95. It printed a fresh daily low at 108.82.

The decline from the highest level since last Thursday was precipitated by a decline of the US dollar in the market and also as stocks prices in Wall Street turned decisively to the downside. The Dow Jones is now down 0.38% while the Nasdaq losses 0.45%.

The yen climbed across the board during the last hours, trimming losses in the market, while the US dollar reversed its trend and moved toward daily lows. Higher-than-expected inflation data from the US failed to give a sustainable support to greenback.

USD/JPY technical levels

To the upside, resistance levels might be seen at 109.15 (20-hour moving average), 109.65 (daily high) and 110.57 (55-day moving average). On the opposite direction, support levels could be located 108.80/85 (daily low), 108.45 (May 16 low) and 108.20 (May 12 low).