USD/JPY pressured hard to key 119.20 support in early Asia

By FXStreet FXStreet (Guatemala) – Following along the bearish trend and major breach of the 120.70 200 DMA, with yet further bearish closes on Wall Street and in Global equities, USD/JPY is hit again and has taken out US session lows.

While not very convincing on the major recovery in the greenback after Black Monday last week, when it found room for itself on the 121 handle, albeit very temporarily and capped at 121.62, or the 200 SMA on the hourly chart, there has been a major breach in USD/JPY in European and US markets and the theme continues to test last week’s support of the hourly 20/50 SMA golden cross-over support at 119.20 in early Asia.

USD/JPY down on negative US session

The US session with the S&P 500 down 2.95%, to $1914, Dow -2.83% at 16059.42 and NASDAQ – 3.09% at 4142.63, while US 10-year yields dropped down to 2.15% by 6.5 basis points, denting the greenback and accompanied by the worst result in ISM manufacturing for the US since May 2013 that arrived 51.1 vs 52.56 expected and 52.7 prev, that also put further downside pressure on USD/JPY in the US session.

USD/JPY started out on back-foot in Europe

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Source:: FX Street