- Dollar weakness keeps USD / JPY limited.
- Slight rebound in US yields and stocks help support it.
The USD / JPY fell to 109.09 during the European session reaching the lowest level in two weeks. Then it bounced, failing to get past the 109.25 area. It remains in a small range, with some downward pressure in a context of weak dollar.
The pair is falling for the second day in a row and getting closer to 109.00. If it breaks below, further declines could be expected. The next strong support is seen around 108.50.
The dollar it is backing down against most of its rivals on Monday, at a moderate pace. At the same time equity markets are rising and Treasury yields they rebound, but slightly. The 10-year rate remains below 1.20%, in the zone of minimums in months.
The economic calendar shows a relatively calm day ahead in the US, before busy days. On Tuesday the data to highlight is the factory orders for June, which is expected to show a rise of 1% compared to the previous month. In addition, Michelle Bowman, governor of the Federal Reserve, will speak at a seminar on economic recovery.
After Tuesday, the focus will shift to employment data with the ADP report on Wednesday, unemployment benefits on Thursday, and the official report on Friday, with non-farm payrolls and the unemployment rate.
Technical levels
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