USD/JPY drops below 108.50 for the first time since early February
- 10-year US Treasury bond yield is losing more than 6% on Friday.
- US Dollar Index registers small daily gains near 98.50.
- Wall Street's main indexes opened more than 3% lower.
The USD/JPY pair extended its daily slide during the early trading hours of the American session and touched its lowest level since February 3rd at 108.46. As of writing, the pair was trading at 108.50, erasing 1% on a daily basis.
Although the macroeconomic data releases from the US helped the greenback gather strength, the flight-to-safety doesn't allow the pair to stage a rebound.
DXY looks to end the week on a strong note
The US Bureau of Economic Analysis reported that the annual core PCE inflation in January ticked up to 1.6% and Personal Income increased 0.6% on a monthly basis to surpass the market expectation of 0.3%. The US Dollar Index (DXY), which tested the 98 handle earlier in the day, was last up 0.2% at 98.60.
Meanwhile, St. Louis Federal Reserve bank president James Bullard on Friday said that a Fed rate cut was possible if the coronavirus were to turn into a global pandemic but added this was not the base case scenario.
On the other hand, the 10-year US Treasury bond yield id erasing more than 6% for the second straight day on Friday and Wall Street's main indexes are down more than 3% to reflect the dismal market mood, which helps the JPY preserve its strength.
Later in the session, the University of Michigan's Consumer Confidence Index from the US will be looked upon for fresh impetus.
Technical levels to watch for