- The dollar gained momentum after the US economic reports.
- USD / JPY erased losses for the day and looks towards 109.00.
The USD / JPY rose from 108.65 to 108.93, in a few minutes, marking a new high for the day after the dollar rose following the release of the preliminary May PMI report.
The PMI services index for May jumped to 70.1, widely beating expectations while manufacturing climbed to 61.5. The data pushed up the yields of Treasury bonds and the dollar in the market. Stocks on Wall Street reacted higher as well.
Despite falling against the dollar, the yen advanced against other currencies, as the dollar on other fronts rose at a faster pace in the last hour. The DXY went from daily lows to climb to 90.00.
The USD / JPY maintains a positive tone in the short term. If the raises are extended, it will face resistance at 109.00 / 05 and above it remains 109.20. Below 108.70, the bullish momentum would fade, exposing the area of ​​the 108.60 lows.
Technical levels
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