USD/JPY accelerates slide below 111.00 amid risk aversion

• Yen gains momentum as equity prices tumble.
• USD/JPY turns negative for the week, approaches last week lows.

The USD/JPY pair broke below 111.10 and tumbled to 110.83, reaching the lowest level since last Friday. It was holding near the lows with a strong bearish intraday tone.

The yen gained momentum amid risk aversion. The Dow Jones dropped from 1-week highs into negative territory, it was falling 0.15% while the Nasdaq was down 0.95%. Crude oil prices fell more than 1% in a few minutes. The DXY also benefited from recent moves but the yen was the gained the most and it was the top performer.

Short-term technical levels

USD/JPY turned to the downside yesterday during the US session after finding again resistance around the 111.80 area. Last week the retreat found support at 110.65/70, level that could be tested.

To the downside, below 110.80, the next support level might be seen at last week low at 110.65/70, followed by 110.45 and 110.30. On the upside, resistance now could be located at 111.00, 111.30 (20-hour moving average) and 111.40/45.