USD/JPY declines toward 104.00 amid ongoing USD selloff
- USD/JPY turned south after closing in the positive territory on Wednesday.
- US Dollar Index suffers heavy losses below 91.00.
- Eyes on US Jobless Claims and Services PMı data.
After rising to a fresh weekly high of 104.76 on Wednesday, the USD/JPY pair turned south on Thursday pressured by the persistent selling pressure surrounding the greenback. As of writing, the pair was down 0.32% on the day at 104.06.
DXY continues to push lower after breaking below 91.00
In the absence of significant fundamental drivers, investors don't seem to be seeing any reason to stop selling the USD on Thursday. In the meantime, heightened hopes for a Brexit deal is helping major European currencies gather strength and put additional weight on the buck.
At the moment, the US Dollar Index, which touched its lowest level in more than two years at 90.69 earlier in the session, is down 0.45% on the day at 90.71.
Later in the day, the IHS Marit and the ISM will be both releasing the November PMI data. Additionally, the US Department of Labor will publish its weekly Initial Jobless Claims report.
In the meantime, the 10-year US Treasury bond yield is flat on the day at 0.936%, failing to provide a directional clue to USD/JPY. Moreover, the market mood remains neutral with the S&P 500 Futures staying unchanged and allowing the USD's market valuation to continue to impact the pair's movements.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
