USD/JPY tumbles below 114.00 as Dow Jones retreats under 20,000

The Japanese yen extended gains across the board amid a decline of the US dollar across the board and a decline in equity prices on Wall Street. USD/JPY fell below 114.00 and accelerated the decline. 

The pair bottomed at 113.75, hitting the lowest since Thursday and it was holding near the lows, with a negative tone. The recent slide took place while the bond market remained steady. The Dow Jones was falling 0.93%, back under 20,000 while the Nasdaq was losing 1.31%. 

A weaker US dollar and risk aversion boosted the demand for the Japanese yen in the currency market, during the American session. 

USD/JPY technical levels

To the downside, support levels might be located at 113.70/75 (daily low), 113.00/05 (Jan 25 & 26) and 112.50/55 (Jan low). On the upside, resistance could lie at 114.25 (Asian session low), 114.90/95 (European session high) and 115.35 (Jan 27 high).