- The dollar shoots up after the US data.
- Stock prices on Wall Street reversed sharply, recording significant losses.
- USD/JPY hits 2-day highs but fails to consolidate above 132.50.
The pair USD/JPY rose to 132.73 after the start of the American session and after the release of US economic data. It then pulled back finding support above 132.15.
So far, the pair has been rejected above 132.50. A consolidation above the mentioned level would strengthen the US dollar. On the other hand, a break below 131.50 would expose the pair to 131.00.
The dollar rises after the data
Economic data released in the US on Thursday showed the economy expanded at an annualized rate of 3.2% during the third quarter, up from 2.9% in the previous estimate. Prices were also revised upwards. Initial jobless claims rose to 216,000, below the market consensus of 222,000, while continuation claims fell for the first time in weeks to 1.672 million from 1.678 million.
The US numbers beat expectations, triggering an intraday rally in the dollar and a fall in stocks and bond prices. The Dow Jones extended the losses, a few minutes after the opening fell 0.96% and the Nasdaq plummeted 1.75%. The Japanese yen received some support from deteriorating market sentiment and hit record highs against currencies such as the Aussie and Kiwi.
The key move for USD/JPY came from the bond market. Treasury yields hit new all-time highs boosting the pair. The 10-year US bond yield rose from 3.64% to 3.69%, while the 2-year US bond yield rose from 4.20% to 4.26%.
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.
