USD/JPY drops below 110.00 after uninspiring US data
- USD/JPY is edging lower for the second straight day on Tuesday.
- Durable Goods Orders in US rose less than expected in June.
- US Dollar Index stays in the negative territory near 92.50.
The USD/JPY pair came under renewed bearish pressure in the early American session on Tuesday and touched its lowest level in a week at 109.88. As of writing, the pair was down 0.4% on a daily basis at 109.90.
Falling US T-bond yields, uninspiring data hurt USD
The broad-based USD weakness seems to be weighing on USD/JPY in the second half of the day. The data published by the US Census Bureau showed on Tuesday that Durable Goods Orders rose by 0.8% on a monthly basis in June. With this reading missing the market expectation for an increase of 2.1%, the US Dollar Index edged lower and was last seen losing 0.18% at 92.47.
Other data from the US showed that the Housing Price Index arrived at +1.7% in May, compared to analysts' estimate of 1.8%.
In the meantime, the 10-year US Treasury bond yield is losing 4.4% on the day, putting additional weight on USD/JPY's shoulders.
Earlier in the day, Bank of Japan (BoJ) Governor Haruhiko Kuroda said that the BoJ's 2% inflation target has resulted in Japan's economy no longer being in a deflationary situation. "Corporate profits and growth rates have much improved, compared to the era of deflation," Kuroda added but these remarks had little to no impact on USD/JPY's movements.
On Wednesday, the FOMC will announce its Interest Rate Decision and publish the Monetary Policy Statement.
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.
