- USD / JPY gained traction after falling below 104.00 on Monday.
- The US dollar index rises towards 92.00 in the American session.
- The major Wall Street indices are trading deep in negative territory.
The pair USD/JPY It fell to a new weekly low of 103.83 on Monday, but reversed its direction during US business hours. At time of writing, the pair is trading 104.35, gaining 0.27% on the day.
DXY recovers towards 92.00
The general weakness of the USD caused the USD / JPY to decline during the first half of the day. However, after major US stock indices started the day in negative territory, the US Dollar Index (DXY) turned north and staged a decisive rally.
Additionally, month-end flows and profit taking appear to be providing an additional boost to the dollar. At time of writing, the DXY, which was down more than 2% in November, posted small daily gains at 91.89.
Earlier in the day, US data showed that the ISM Chicago PMI fell to 58.2 in November from 61.1 in October and pending home sales were down 1.1% in October. However, market participants largely ignored these readings.
Meanwhile, the poor performance of the major Wall Street indices appears to be allowing the USD to remain strong against its peers. At the moment, the Dow Jones Industrial Average and S&P 500 indices are losing 1.2% and 0.78%, respectively.
On Tuesday, the unemployment rate and manufacturing PMI data from Jibun Bank will be included on the Japanese economic docket.