- The DXY loses strong and falls towards 91.00, in the preview of the American session.
- USD / JPY corrects lower after reaching 109.70, the highest in almost three weeks.
The USD / JPY is trading just above 109.40, the low since the Asian session, retreating after rising to 109.69, the highest level since April 13.
The dollar lost momentum in the market, favoring the decline of the USD / JPY. The dollar index (DXY) is approaching 91.00, after failing to stay in positive territory. The decline occurs while Treasury bond yields remain in range, and with an advance in Wall Street futures. The futures of the main indices point to a positive open with gains around 0.45% on average.
The rise in equity markets is playing against the yen, which is one of the worst performing so far this Monday, a day with limited volume due to holidays in Asia and the United Kingdom.
The economic calendar shows the publication of the US April ISM manufacturing report as key events ahead. In addition, there is expectation for the presentation of Jerome Powell, the chairman of the Federal Reserve who will speak in the second half of the American session.
Short-term levels
In regards to the technical, the bullish bias remains in the USD / JPY, but with the moment reduced. The next support is at the 109.25 / 35 band, which, if given, would enable a bearish extension. On the upside, now 109.50 / 55 is the first resistance to break before the 109.70 high zone, which protects the next level at 109.95.
Additional levels
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