USD/JPY hits fresh lows under 111.00 as yields tumble

USD/JPY broke a trading range to the downside and bottomed at 110.90, reaching the lowest since last Wednesday. The pair currently is hovering around 111.00, still under some pressure. 

The recent decline took place amid a rally of the yen in the market. The demand for the Japanese currency strengthened as Wall Street indexes decline and amid a rally in US bonds. The Dow Jones is falling 0.41% while the S&P500 drops 0.49%. In the bond market, the 10-year yield fell to 2.333%, the lowest level since February. 

The US dollar failed to gain support despite economic data from the US. The ISM manufacturing index fell, but less-than-expected (57.2 vs 57.0) while construction spending rose 0.8%. 

Technical levels 

To the downside, support levels might be located at 110.90 (Apr 3, Mar 30 low), 110.60 (Mar 23 & 24 low) and 110.05/10 (Mar low). On the upside, resistance might be seen at 111.30 (20-hour moving average), 111.55/60 (daily high) and 112.00 (psychological).