USD/JPY drops toward weekly low near 109.00 amid USD weakness
- USD/JPY extends the previous session’s losses on Friday in the initial Asian trading session.
- US Dollar Index hits one-month low on disappointing data.
- The Japanese Yen gains on its safe haven appeal despite a pessimistic economic outlook.
The intense selling pressure in the US Dollar keeps USD/JPY edgy in the Asian session on Friday. The pair slips below 109.50 level and looks to extend the losses further on the weakness in the greenback.
At the time of writing, USD/JPY is trading at 109.45, down 0.01% for the day.
The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals fell below the 92.0 mark to its lowest level in the previous four weeks. The downbeat US economic data echos the narrative of the dovish Fed’s outlook.
The US Gross Domestic Product (GDP) and the Weekly Initial Jobless Claims came against the market expectations. The GDP stood at 6.5% in Q2 well below the market expectations of 8.4%.
The Initial Jobless Claims fell less than anticipated to 400K.
On the other hand, the Japanese yen held the ground on its safe haven appeal as the USD valuations reduced on the disappointing data.
It is worth noting that, S&P 500 Futures are trading at 4,396 with 0.36% losses for the day.
As for now, investors wait for the US Core Personal Consumption Expenditure (PCE) data, and the Japanese Unemployment Rate to gauge the market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
