USD/JPY breaks below 110.00 drops to 4-month lows

The yen gained momentum in the market amid a decline of equity prices in Wall Street and a rally in US bonds. Also the sharp slide of the USD/JPY boosted the Japanese currency in the market. 

The pair accelerated to the downside when it broke below 110.50 and recently gained even more bearish momentum, after it slide under the 110.00/10 barrier. The US dollar bottomed at 109.69, the lowest level since mid-November. The greenback is having the worst performance in a month. 

In Wall Street, the Dow Jones is falling 0.55%, and the Nasdaq declines 0.85%. The 10-year US bond yield dropped from 2.36% to 2.30%. 

Technical levels 

To the downside support level might now lie at 109.20, 109.00 (psychological) and 108.50 (Nov 14 high / Nov 17 low). On the flip side, now the immediate resistance is seen at 110.00, followed by 110.50 and 110.70 (intraday high).