USD/JPY drops further below 113.00 amid risk aversion

• The yen is among the top performers supported by a slide in equity prices across the globe. 
• Greenback unable to benefit from risk aversion accelerates slide against Japanese yen. 

The USD/JPY pair extended the slide and printed a fresh daily low at 112.70, a 1-week low. It is trading around the lows, holding a bearish tone. 

The move lower intensified during the last hours as US yields dropped further and also as major indices in Wall Street reached fresh lows. The 10-year low fell to 2.82% while the Dow Jones is down 1.45%. 

The risk-off mode in the market boosted the demand for the yen that is up across the board. Regarding the greenback, it remains flat against commodity currencies and is posting losses versus its European rivals. The US Dollar Index pulled back further from the 18-month high it reached on Friday. 

USD/JPY Levels to watch 

To the downside, immediate support could be seen at 112.65 (100-day moving average), followed by 112.20 (Dec 6 and 10 low) and 112.00. On the upside, resistances might be located at112.90, 113.20 (20-day moving average) and  113.50.