- The Japanese yen rises across the board in US time as stocks fall and bonds rise.
- The DXY turns negative and extends its losses towards 105.00.
- USD/JPY pulls back after hitting weekly highs.
The pair USD/JPY it broke below the 137.55 zone and fell to 136.39, marking a new daily low. The pair pulls back from weekly highs amid a weaker US dollar. After two consecutive days of rises, the pair is trading lower.
Wednesday’s publication showed an increase in the Unit Labor Cost in the US during the third quarter of 2.4%, below the 3.2% market consensus. Non-farm productivity increased by 0.8%, exceeding expectations for a 0.5% increase. On Thursday, the applications for unemployment benefits will be published and on Friday, the Production Price Index. Next week, on Tuesday, the Consumer Price Index and on Wednesday, the FOMC decision.
Stock prices on Wall Street fell modestly, with the S&P 500 down 0.25%, on track for the fifth consecutive decline. At the same time, US yields are also falling. The 10-year Treasury yield stands at 3.44%, the lowest since mid-September.
The recovery in Treasury bonds and the fall in stock prices are driving the Japanese yen, which is among the most bullish values ​​of the American session. On the contrary, the US dollar registers a general fall. The DXY is down 0.43% and approaches 105.00.
USD/JPY slide is contained so far at 136.30
The decline in USD/JPY found support around 136.30, a relevant support. Below the 20 SMA on the four-hour chart stands at 136.15. So a confirmation below 136.15 would point to further losses for the pair initially targeting 135.55.
The dollar needs to break and hold above 137.70/80 to open the doors to 138.00 and higher.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
