USD/JPY down more than 2%; now eyes 117.00

FXStreet (Córdoba) - USD/JPY dramatic decline continued during the second half of the American session as the US dollar printed fresh lows across the board. The pair dropped so far almost 300 pips on Wednesday and 440 from Monday’s high.

During the European session, the US dollar rose momentarily above 120.00 against the yen and recently bottomed at 117.09, the lowest level since January 21. The pair appears to be quickly headed toward January lows located at 115.96.

All gains that followed the decision last Friday from the Bank of Japan to introduce negative interest rates have been erased and is even 150 pips below the level it had back then.

The Japanese yen and the New Zealand dollar are the top performers in the currency market on Wednesday so far.

USD/JPY: Another test of 116.00?

The sharp decline changed dramatically the technical outlook for the pair that now is near the key 116.00 area. That area has been offering support since December 2014. It the pair breaks below and consolidates it could open the doors for a bearish continuation.

To the upside, 118.80 - 119.00 could become again a relevant short-term resistance area like it was during January.