- The US dollar loses momentum during the American session.
- USD / JPY suffers the worst decline in four weeks.
The pair USD/JPY it fell further during the American session and is trading at 109.72, close to September lows. The pair is experiencing a sharp reversal after trading Wednesday at weekly highs above 110.40.
The reversal came amid a drop in U.S. yields and a weaker dollar. The US 10-year yield hit 1.38% earlier in the week and currently stands at 1.31%. The DXY is falling 0.27%, below 92.50, ending a three-day winning streak.
US economic data beat expectations with a larger than expected decline in initial jobless claims to a new pandemic low. On Friday the producer price index expires.
Still lateralized, now near the bottom of the range
USD / JPY is still unable to move away from the 110.00 area. On Wednesday it looked poised to clear the way for more gains, but the recovery was followed by a reversal. Now the pair is about to test an uptrend line, close to the 109.60 support area. A daily close clearly below 109.60 should leave the pair vulnerable to further losses. The next support is around the 109.35 area.
Technical levels
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