- The dollar extends the downward correction throughout the market.
- USD / JPY returns below 111.00, rejected above 112.00.
The USD / JPY is falling on Friday and is trading just below 110.00 amid a widespread correction of the dollar in the market. It is the second consecutive daily decline for the pair, which has already fallen a hundred pips after being above 112.00 on Thursday, the highest since February 2020.
The setback reflects the weakness of the dollar at this time, and a drop in the yields of Treasury bonds. The rise in equity markets is not stopping the decline in USD / JPY. On other fronts, the Japanese currency remains stable.
The data released from the US on Friday came as no surprise. The price index for personal consumption expenditure advanced 3.6% (annually) in August, the same as the previous month and in line with expectations. The market awaits more data, in this case of activity in the manufacturing sector and consumer confidence.
The pullback from the 112.05 peak may show some forward weakness. A weekly close above 111.50 would point to more gains, while below 110.50 could anticipate a return to the 20-week moving average at 110.05.
Technical levels
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