USD/JPY jumps to 132.70 amid a stronger US Dollar
|- US Dollar soars across the board after US data.
- Equity prices in Wall Street reversed sharply, post important losses.
- USD/JPY hits two-day highs, fails to consolidate above 132.50.
The USD/JPY rose to 132.73 after the beginning of the American session and following the release of US economic data. It then pulled back finding support above 132.15.
So far, the pair has been rejected from above 132.50. A consolidation above the mentioned level would strengthen the US Dollar. On the flip side, a break under 131.50 would expose 131.00.
Dollar up after data
Economic data released in the US on Thursday showed the economy expanded at an annualized rate of 3.2% during the third quarter, above the 2.9% of the previous estimate. Price indicators were also revised higher. Initial Jobless Claims rose to 216K below the 222K of market consensus while Continuing Claims fell for the first time in weeks from 1.678 million to 1.672 million.
US figures came in above expectations and triggered an intraday rally of the US Dollar and a decline in equity and bond prices. The Dow Jones extended losses, a few minutes after the opening is falling by 0.96% and the Nasdaq tumbles by 1.75%. The Japanese Yen received some support from the deterioration in market sentiment and printed fresh highs against currencies like the Aussie and the Kiwi.
The key move for the USD/JPY came from the bond market. Treasury yields rose to fresh daily highs boosting the pair. The US 10-year bond yield climbed from 3.64% to 3.69% while the US 2-year yield soared from 4.20% to 4.26%.
Technical levels
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.