USD/JPY slides further, hits fresh lows under 113.50

USD/JPY broke an important short-term uptrend line and accelerated the decline. The pair bottomed at 113.46, hitting a 2-day low. The yen gained momentum against the US dollar amid a recovery in US treasury bonds. 

More correction ahead? 

With price consolidating below a short-term trendline and also under the 20-SMA in 4-hour chart, the technical outlook could start favoring a continuation of the decline. The pair still remains around the level it had at the beginning of the week. 

Equity prices in Wall Street are siring. The Dow Jones was up 0.20%, at record high levels while the Nasdaq was flat. In the bond market, the 10-year yield was falling, at 2.355%, the lowest since Monday. 

A weak US dollar boosted the pair. The greenback is falling across the board and accelerated the decline during the last hours. 

Technical levels 

To the upside, resistance levels might be located at 113.75 (trendline), 114.10/15 (American session high) and 114.40 (daily high). On the flip side, support could be seen at 113.30 (Nov 29 high), 112.85 (Dec 5 low) and 112.00/05 (Nov 30 low).