- The Japanese yen gains momentum during the American session amid declining US yields.
- US data is mixed: Jobless claims are at monthly highs, while durable goods orders rise above expectations.
- Business activity in the US manufacturing sector contracted in early November and the S&P Global Manufacturing PMI fell to 47.6 points.
- USD/JPY extends its pullback from the 142.00 zone and falls below 140.00 after the PMI release.
The USD/JPY it falls for the second day in a row on Wednesday after the release of US data and before the FOMC minutes. The pair continues to fall after reaching the highest level in two weeks above 142.00 on Monday. At the time of writing, the pair is trading around the 140.00 levellosing -0.85% on the day.
USD/JPY at 140.00
The dollar’s outlook deteriorated on Wednesday, with the price below the 20 SMA on the four hour chart. Even so, the USD/JPY remains above the key 140.00 support zone. A break down would point to more losses.
If the pair manages to stay above 140.00, the dollar could regain strength. To the upside, immediate resistance is seen at 141.50, followed by 142.05/10.
Yen rises as US yields fall
US economic data showed a higher-than-expected increase in jobless claims, while durable goods orders rose above expectations.
In addition, business activity in the US manufacturing sector contracted in early November and the S&P Global manufacturing PMI fell to 47.6 points.
The dollar fell on the data.
Later, during the second half of the American session, the Federal Reserve will publish the minutes of its last meeting. market participants look for clues about the Fed’s next moves. The next FOMC meeting will be on December 13-14. Recent comments from Fed officials justify a further rate hike, but it could be less than 75 basis points.
US bond yields are falling ahead of the minutes, supporting the Japanese yen broadly, which is unaffected by risk appetite.
USD/JPY technical levels
|Last Price Today||140.03|
|Today’s Daily Change||-1.18|
|Today’s Daily Change %||-0.84|
|Today’s Daily Open||141.21|
|20 Daily SMA||144.03|
|SMA of 50 Daily||145.01|
|SMA of 100 Daily||141.08|
|SMA of 200 Daily||133.6|
|Previous Daily High||142.24|
|Minimum Previous Daily||141.08|
|Previous Weekly High||140.8|
|Previous Weekly Minimum||137.67|
|Maximum Prior Monthly||151.94|
|Minimum Prior Monthly||143.53|
|Daily Fibonacci 38.2%||141.53|
|Daily Fibonacci 61.8%||141.8|
|Daily Pivot Point S1||140.78|
|Daily Pivot Point S2||140.35|
|Daily Pivot Point S3||139.62|
|Daily Pivot Point R1||141.94|
|Daily Pivot Point R2||142.67|
|Daily Pivot Point R3||143.1|
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.