USD/JPY slumps to fresh weekly lows at 111.75, then rebounds
|- Yen regains poise, as risk sentiment sours on disappointing German/ Eurozone PMIs
- Sellers to remain in charge ahead of US retail sales and Philly Fed manufacturing index?
The USDJPY pair finally broke its recent range trade around the 112 handle and lost nearly 20-pips quickly, as the safe-haven bids for Yen got a fresh lift after a renewed risk-aversion wave gripped the European markets on disappointing German and Eurozone manufacturing PMI numbers.
Downbeat private sector activity report from the bloc’s economic powerhouse, Germany, re-ignited economic slowdown concerns and dampened the risk sentiment, with markets fleeing to safety bets such as the Yen.
Moreover, the ongoing weakness in the US Treasury yields and S&P 50 futures accentuated the downside break in the spot, with sellers back in command after struggling to regain control for almost 5 straight days.
However, the buyers appear to lurk near 111.75 region as they manage to find some support from a fresh leg up in the US dollar across its main competitors, courtesy of the EUR/USD sell-off and overall risk-aversion. The USD index jolted higher to fresh weekly tops at 97.26, having consolidated near the 97 handle.
Markets now eagerly await the US retail sales, weekly jobless claims and Philly Fed manufacturing data releases to validate the bearish break. A slew of disappointing US economic news could open the doors for a test of 111.50/111 levels.
USD/JPY Technical Levels
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