USD/JPY falls toward 109.00 as the US dollar losses momentum
|- DXY fails to hold into positive territory after US data and even amid risk aversion.
- USD/JPY unable to break 109.50, retreats to 109.00.
The USD/JPY failed again to break the 109.45/50 resistance area and weakened. During the American session, it printed a fresh daily low at 109.13. As of writing, it trades at 109.20/25, modestly lower for the day.
So far, on Wednesday, USD/JPY trades within Tuesday’s range. The failure at 109.50 left the doors open to a retreat that materialized amid a decline across the board of the US dollar.
US yields are falling modestly supporting the yen in the market. The 10-year yield stands at 1.58%, after being rejected from above 1.60% hours ago. Economic data from the US came in mixed, with the Market PMI revised higher from the preliminary reading and the ISM service falling unexpectedly. The ADP report showed an expansion of 742K in private payrolls in April, modestly below the market consensus of 800K. On Friday, the US official employment report is due.
Equity prices in Wall Street are mixed and off highs. The Dow Jones is up by just 0.02% and the Nasdaq by 0.45%. The tech index is recovering after having the on Tuesday the worst day since mid-March.
Technicals levels
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