The yen surged on Friday after a series of weak data came out of Europe and the US. Manufacturing activities slowed down in both economic areas, which heightened investors’ fear that central banks’ concerns might just have materialised. The spread between 3-month US Treasury bills and 10-year notes inverted for the first time since 2007, which has historically been a precursor to recession, boosting demand for safe-haven assets like the yen.

On the technical side, USDJPY fell through the 110.30 support level. This level has turned into a resistance for the immediate pullback. The price is likely to test the next support of 109.60.

  The sentiment-price correlation chart shows investors’ mood in the negative territory, indicating a strong bearish bias in the medium-term.

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