USD/JPY hits fresh lows under 103.70

• Yen gains momentums across the board on Tuesday.
• USD/JPY falls while other crosses remain sideways.

The USD/JPY extended the decline and printed a fresh daily low at 103.68. It is trading near the bottom, facing bearish pressure. It is erasing most of the Monday’s American session gains, approaching the November low at 103.16.

The yen gained ground across the board over the last hours, led by the decline in USD/JPY. At the same time, the US dollar remains mostly steady against commodity and emerging market currencies and fell versus the pound. Equity prices are modestly higher holding onto recent ranges.

Looking again at the November low

If the USD/JPY manages to hold under 103.70, the bearish momentum could intensify, suggesting a test of the November low at 103.16. Before that level, a support is seen around 103.50 (Dec 14 low).

It the pair rises back above 103.7 it would alleviate the negative tone.  For a more sustainable recovery, the dollar needs to break above 104.15/20.

On a wider perspective, the bearish trend will hold as long as price remains under 105.20/30.

Technical levels to watch