Yen rally under threat after break of long-term support level

The yen’s two-month rally from its October low is coming under threat after the currency slipped below a key support level, opening the door for it to start weakening again.

The currency fell for a fourth day Friday following stronger-than-forecast U.S. employment data, dropping further below a support line starting from October’s three-decade low. It fell as much as 0.9% to ¥134.59 per dollar, its weakest since Dec. 20.

November’s 3.8% decline in real earnings from a year earlier, the most since May 2014, also weighed on the yen. It extended losses after a report that Bank of Japan officials see little need to rush to make another adjustment to its yield-curve control policy.

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