USD/JPY declines below 109.70 on broad USD weakness

  • USD/JPY remains on the back foot in the American session.
  • US Dollar Index stays deep in the red below 92.00.
  • Rising US Treasury bond yields limit USD/JPY's downside.

After spending the majority of the day moving sideways in a tight range below 110.00, the USD/JPY pair edged lower in the American session and was last seen losing 0.25% on the day at 109.63.

USD struggles to capitalize on rising T-bond yields

The unabated selling pressure surrounding the greenback seems to be forcing USD/JPY to remain on the back foot in the second half of the day. The US Bureau of Economic Analysis announced on Thursday that the US economy grew by an annualized rate of 6.5% (first estimate) in the second quarter. This reading missed the market expectation of 8.5%.

Other data from the US showed that there were 400,000 Initial Jobless Claims in the week ending July 24, compared to analysts' estimate of 380,000, and Pending Home Sales declined by 1.9% in June.

Following the disappointing data releases, the US Dollar Index is down 0.36% on the day at 91.93.

In the meantime, the 10-year US Treasury bond yield is up nearly 3% on the back of risk flows, keeping USD/JPY's downside limited for the time being.

On Friday, June Unemployment Rate and May Retail Trade data will be featured in the Japanese economic docket. Later in the day, the Personal Consumption Expenditures (PCE) Price Index data, the Fed's preferred gauge of inflation, from the US will be looked upon for fresh impetus.

Technical levels to watch for


Today last price 109.67
Today Daily Change -0.25
Today Daily Change % -0.23
Today daily open 109.92
Daily SMA20 110.29
Daily SMA50 110.05
Daily SMA100 109.58
Daily SMA200 107.09
Previous Daily High 110.29
Previous Daily Low 109.74
Previous Weekly High 110.6
Previous Weekly Low 109.06
Previous Monthly High 111.12
Previous Monthly Low 109.19
Daily Fibonacci 38.2% 110.08
Daily Fibonacci 61.8% 109.95
Daily Pivot Point S1 109.68
Daily Pivot Point S2 109.44
Daily Pivot Point S3 109.13
Daily Pivot Point R1 110.22
Daily Pivot Point R2 110.53
Daily Pivot Point R3 110.77



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