USD/JPY drops below 110.00 after uninspiring US data
|- USD/JPY is edging lower for the second straight day on Tuesday.
- Durable Goods Orders in US rose less than expected in June.
- US Dollar Index stays in the negative territory near 92.50.
The USD/JPY pair came under renewed bearish pressure in the early American session on Tuesday and touched its lowest level in a week at 109.88. As of writing, the pair was down 0.4% on a daily basis at 109.90.
Falling US T-bond yields, uninspiring data hurt USD
The broad-based USD weakness seems to be weighing on USD/JPY in the second half of the day. The data published by the US Census Bureau showed on Tuesday that Durable Goods Orders rose by 0.8% on a monthly basis in June. With this reading missing the market expectation for an increase of 2.1%, the US Dollar Index edged lower and was last seen losing 0.18% at 92.47.
Other data from the US showed that the Housing Price Index arrived at +1.7% in May, compared to analysts' estimate of 1.8%.
In the meantime, the 10-year US Treasury bond yield is losing 4.4% on the day, putting additional weight on USD/JPY's shoulders.
Earlier in the day, Bank of Japan (BoJ) Governor Haruhiko Kuroda said that the BoJ's 2% inflation target has resulted in Japan's economy no longer being in a deflationary situation. "Corporate profits and growth rates have much improved, compared to the era of deflation," Kuroda added but these remarks had little to no impact on USD/JPY's movements.
On Wednesday, the FOMC will announce its Interest Rate Decision and publish the Monetary Policy Statement.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.