USD/JPY falls below 145.00 after US data

• The US S&P Global PMI disappointed expectations.
• Following the release of this data, the dollar fell across the board.
• The USD/JPY pair looks vulnerable to further losses as long as it remains below 145.00.

The pair USD/JPY it broke below 145.00, falling to its lowest level in almost two weeks. This drop was triggered by the US economic data release that came in below expectations, which led to a decline in US Treasury yields and weakened the Dollar.

US PMI data disappoints

According to preliminary data, the S&P Global Composite PMI Index unexpectedly fell from 52 to 50 points in August. The services PMI fell from 52.3 to 51, and the manufacturing PMI fell from 49 to 47. These figures indicate a reduction in demand for the US dollar.

We reported that new home sales surprised positively, reaching an annual rate of 714,000, beating expectations of 705,000. However, these figures did not alter the general trend of the dollar after the PMI.

Earlier, the Japanese PMI was one of the few to beat expectations: the manufacturing index rose from 49.6 to 49.7 and the services index from 53.8 to 54.3.

The Japanese Yen is one of the best performing currencies on Thursday, benefiting from falling government bond yields. EUR/JPY is trading at two-week lows below 157.00, while GBP/JPY has lost more than 200 points.

Attention now turns to the Jackson Hole Symposium, where Federal Reserve Chairman Jerome Powell will deliver a speech on Friday. Earlier on Thursday, the market will be watching data for US jobless claims and durable goods orders.

USD/JPY accelerates bearish correction

USD/JPY has bottomed at 144.64, reaching the lowest level since August 14. It remains close to these lows, showing strong negative momentum. As long as the pair remains below 145.00, further losses seem likely.

On the downside, next support levels lie at 144.40 (11 Aug low) and 144.05. If the pair manages to rally above the 145.00 area, it would ease the bearish pressure.

technical levels