USD/JPY slips to 108.65 on weakening Dollar

• USD/JPY breaks lower in Asia, testing 108.65.
• BoJ's Iwata notes the Yen is stronger than expected, no changes to easing policy.

USD/JPY continued to break down through Asian trading, making a new session low of 108.65 as the Greenback continues to yield ground to its traded pairs.

The Japanese Yen continues to add to its strength as global equities drift lower in active trading, even as representatives fro mthe Bank of Japan, such as BoJ Governor reaffirming the central bank's dedication to easy monetary policy on the back of increased Japanese Government Bond (JGB) 3-5 year purchases by the BoJ. Markets shrugged off the increase in fiscal easing to continue buying up the Yen, even as BoJ Deputy Governor Kikuo Iwata stated that the Yen is strengthening "more than expected", and observing that there is "misunderstanding in markets" that the BoJ will exit easy policy soon. Iwata also made the observation that the BoJ will not begin to raise rates just because the European Central Bank and the Federal Reserve are keen to exit easy monetary policy stances. Iwata, who's term is slated to expire March 19th, doesn't believe he'll be reappointed for a nother term as Deputy Governor, but stressed the importance of whomever does take over the position must still chase easy monetary policy as aggressively as possible.

Yen buying continues to be an easy play as the US Dollar continues to be punished by markets, depreciating steadily against other currencies, despite the brief alleviation in selling presure brought on by the suddent spike in the benchmark 10-year Treasury bond yields, reaching a four-year high of 2.733% recently.

USD/JPY Technicals

The USD is already trading below the daily pivot through Asia, and price is trading well below the 200-SMA on Daily charts, while swing support/resistance for the week is marked out at 108.27 and 109.10, respectively.

Intraday pivot points:
R2: 109.60
R1: 109.28
PP: 108.90
S1: 108.56
S2: 108.18