USD/JPY: down 0.46% on the US session, bears on top for second session

Ross J Burland FXStreet

Currently, USD/JPY is trading at 109.69, down -0.47% on the day, having posted a daily high at 110.38 and low at 109.61.

USD/JPY was back under pressure today with an advance in the Yen, +0.46% vs the dollar as equities dropped heavily in the US session.

US data was positive today, but crucially, the Philly Fed manufacturing index positively surprised coming in at 18.9 vs expectations of 18.5. However, that was an early gain for the dollar that was short lived.

The terror attack sparked some risk into the yen and the DXY paired back earlier gains down to the closing price prior. Also, Fed's Kaplan was dovish today and echoed some of the rhetoric that we got from yesterday's FOMC minutes, with concerns over the inflation target of 2%and growth target of 3% for the medium term.

USD/JPY levels

"The 4 hours chart shows that the pair met selling interest around a bearish 100 SMA, whilst technical indicators maintain a strong bearish momentum within negative territory, all of which favors a new leg lower for the upcoming sessions, firstly towards the 108.80 level, while a break below it should lead to a test of the 108.00 region," explained Valeria Bednarik, chief analyst at FXStreet.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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