- USD/JPY returns to negative territory following the rally following the US data.
- The US S&P Global PMI recovers in January, although it remains below 50.
- The US dollar weakens during the American session amid risk appetite.
The USD/JPY it rallied to 131.21, following the release of US economic data, but then eased back towards 130.00 as values turned positive on Wall Street. The improvement in risk sentiment weighed on the US dollar.
Data released on Tuesday showed the S&P global manufacturing PMI rose in January from 46.2 to 46.8, above the market consensus of 46.1. The services index rose from 44.7 to 46.6, beating expectations of 44.5. Immediately after the release, the dollar hit highs but then pulled back.
On Wall Street, after a negative opening, the main indices remain flat. Risk appetite and falling US yields pushed USD/JPY lower. The pair is testing levels below 130.00, looking at the daily low that it marked in Asian time at 129.72.
Again, the 20-Day Simple Moving Average, currently at 130.90, capped the upside. The main trend is down, although in the short term the dollar is correcting upwards. Still unable to hold above 131.00. If he succeeds, a deeper recovery seems likely.
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.
