- Japanese Yen rises across the board on American hours as stocks slide and bonds rise.
- DXY turns negative and extends losses toward 105.00.
- USD/JPY retreats after hitting weekly highs.
The USD/JPY broke below the 137.55 area and fell to 136.39, printing a fresh daily low. The pair is retreating from weekly highs amid a weaker US Dollar. It is trading modestly lower for the day, after rising for two consecutive days.
Data released on Wednesday, showed an increase in Unit Labor Cost in the US during the third quarter of 2.4%, below the 3.2% of markets consensus. Nonfarm Productivity rose by 0.8% surpassing expectations of an increase of 0.5%. On Thursday, Jobless Claims data is due and on Friday, the Producer Price Index. Next week, on Tuesday, is the Consumer Prices Index and on Wednesday the FOMC decision.
Equity prices in Wall Street are falling modestly, with the S&P 500 down 0.25%, on its way to the fifth decline in a row. At the same time, US yields are also lower. The 10-year Treasury bond yield stands at 3.44%, the lowest since mid-September.
The rally in Treasuries and the decline in equity prices are boosting the Japanese Yen which is among the top performers of the American session. On the contrary, the US Dollar is falling across the board. The DXY is down by 0.43%, approaching 105.00.
USD/JPY downside contained so far by 136.30
The decline in USD/JPY found support around 136.30, a relevant support. Below the 20-Simple Moving Average in four-hour charts emerges at 136.15. So a confirmation under 136.15 would point to more losses for the pair targeting initially 135.55.
The US Dollar needs to break and hold above 137.70/80 in order to open the doors to 138.00 and more.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD eases to near 1.0850 on renewed USD strength
EUR/USD stays under modest bearish pressure, battling 1.0850 in the European session on Tuesday. The renewed USD strength weighs on the pair. ZEW sentiment survey will be featured in the European economic docket ahead of housing data from the US.
USD/JPY extends rally beyond 150.00 as markets assess BoJ decisions
USD/JPY preserves its bullish momentum after breaking above 150.00 with the 'sell the fact' reaction to the Bank of Japan's decision to end negative interest rates. In the post-meeting press conference, Governor Ueda said they will consider options for easing broadly, including ones used in the past if needed.
Gold price struggles to lure buyers, holds steady above one-week low ahead of FOMC meeting
Gold price ticks lower amid reduced Fed rate cut bets, elevated US bond yields and stronger USD. Geopolitical tensions could lend some support to the safe-haven XAU/USD and help limit losses.
Why is the crypto market crashing?
The two most important contribution to the ongoing bull market is the meteoric rise in Bitcoin due to the ETF approval and the sudden interest spike in Solana ecosystem. But the recent move suggests that the upward momentum is dissipating and a correction looms.
Canada CPI Preview: Inflation pickup could scale back bets on early interest-rate cut
The Canadian Consumer Price Index is expected to have risen by 3.1% YoY in February. The BoC shows no rush to lower its interest rate. The Canadian Dollar maintains its multi-day lows against the US Dollar around 1.3540.