USD/JPY drops to fresh lows and rebounds amid rumors on Cohn’s resignation

 USD/JPY dropped quickly to 109.60, reaching a fresh daily low. The pair dropped on the back of a slide of the US dollar across the board, amid rumors of the resignation Gary Cohn, Director of the National Economic Council. The rumors were denied later and the greenback recovered part of the lost ground.  

US bond yields reversed its daily trend and turned negative for the day. The 10-year dropped from 2.24% to 2.20%. Also, equity prices in Wall Street hit fresh lows and then rebounded. The Dow Jones is falling 0.42% at 21,930 after bottoming at 21,890. 

At the moment, USD/JPY is hovering around 110.00, down less than 20 pips from Wednesday’s close. Price continues to move sideways after being unable to hold above 110.20 to the upside, that would allow an extension of the recovery while to the downside, the 109.60 area capped again the downside. 

USD/JPY technical levels 

To the upside, resistance levels might be located at 110.35 (daily high), 110.60 (Aug 7 low) and then the strong barrier around 111.00. On the flip side, support could be seen at 109.60 (daily low), 109.40 (Aug 11 high) and 108.90.