USD / JPY bounces slightly from week lows, still under pressure below 109.50

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  • US data helps the dollar in the market.
  • Insufficient rebound of USD / JPY to remove downward pressures.

The USD / JPY is falling significantly on Wednesday, breaking a multi-day range. The pair fell to 109.10, reaching the lowest level since mid-August. It then experienced a slight rebound, but after failing to break 109.45, it is approaching lows.

On Tuesday the pair gave bearish signals, weakened after a big drop in Treasury yields. The 10-year rate, which is rising slightly today, went from 1.35% to 1.27%. This weakened the dollar and pushed the yen up on all fronts.

On Wednesday, US economic data, especially that of the manufacturing Empire, gave the dollar some air. The USD / JPY bounce was limited and remains under pressure.

USD / JPY bankruptcy range

Another negative factor is the technical aspect. The downside potential intensified after the break of the strong support at 109.60 that had held the lows for several weeks. USD / PJY fell to 109.10, the low of the second half of August. Below, the next strong support level is at 108.70.

A return above 109.60 could mitigate the downside pressure. While just a firm break of 110.20 / 30, would put the dollar in a favorable scenario, pointing to more rises.

Technical levels

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