- USD/JPY is falling on Tuesday correcting Monday’s advance.
- Price remains close to key 140.00 zone.
- The dollar loses strength due to stability in bond yields and rises in the stock markets.
The USD/JPY extended the retracement from 139.00 and fell to 138.03 on Tuesday, marking a new daily low. The pair is trading around 138.35, in the previous American session, trying to erase the losses.
The dollar is losing ground on Tuesday to lower Treasury yields and also higher stock markets. The Dollar Index (DXY) is down 0.15%, trading around 108.60, paring losses. Wall Street futures point to an open with gains around 0.70%.
in the last hour, USD/JPY found support above 138.00 and started to bounce, partly also after US bond yields stopped falling. What happens in that market can be key for the pair.
US home price and consumer confidence data will be released on Tuesday, which is not expected to have much of an impact. The key data of the week will be on Friday with the official US employment report.
Technically the USD/JPY bias remains bullish, although it lost steam after failing to break above 139.00 and is falling on Tuesday. The current bearish intraday tone would change on a rally above 138.55, which would put the dollar on track for a retest of 139.00. In the opposite direction, below 138.00, the focus will be past the next support in the 137.65 area.
Technical levels
Source: Fx Street
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