- The yen is among the best performing currencies today despite risk appetite and rising yields.
- The US dollar weakens overall during the US session.
- USD / JPY tops the lowest close in a month.
USD / JPY falls on Monday for the third day in a row and hits 113.07, the lowest level since October 12. The pair now remains close under pressure on a weaker greenback across the board.
After trading in range for days, USD / JPY broke lower, clearing the way for further losses. The short-term outlook now favors the decline. The Next levels of support can be seen at 112.95 and 112.10. On the upside, 113.40 is now immediate resistance. If it rises above 114.40 the US dollar would regain strength, probably resuming the long-term uptrend.
The downward move in USD / JPY is taking place despite a rally in US yields. At 10 years, the yields are at 1.48% and at two years at 2.43%. Not even risk appetite is supporting the pair. The Dow Jones is up 0.23%, to new record levels, while the S & P500 is up 0.15%.
After a quiet Monday in terms of US economic data, producer prices on Tuesday and the CPI on Wednesday could trigger market movements after last week’s FOMC meeting. Inflation figures are likely to influence expectations about the Fed’s monetary policy.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
