USD/JPY jumps toward 106.50 as DXY pushes higher after US data

USD/JPY gained traction and turned positive on the day near 106.50.
US Dollar Index extended its advance to a daily high of 93.36.
Durable Goods Orders in US rose by 11.2% in July.

Eren Sengezer FXStreet

After falling toward 106.00 area earlier in the day, the USD/JPY gained traction in the early American session and rose to a daily high of 106.47. As of writing, the pair was up 0.08% on the day at 106.43.

Greenback continues to outperform its major rivals

The broad-based USD strength seems to be the behind USD/JPY's recent upsurge. The US Dollar Index (DXY), which spent the first half of the day in a tight range near 93.00, capitalized on the upbeat US data and touched a fresh six-day high of 93.36. Although the DXY retreated following the initial reaction, it's still up 0.26% on the day at 93.26.

The data published by the US Census Bureau revealed on Wednesday that Durable Goods Orders in July surged by 11.2% and beat the market expectation for an increase of 4.3% by a wide margin.

Meanwhile, the 10-year US Treasury bond yield is up more than 3.5% on a daily basis, helping USD/JPY stay in the positive territory. On the other hand, Wall Street's main indexes look to open the day little changed despite the upbeat data.

There won't be any other macroeconomic data releases from the US in the remainder of the day and the USD's market valuation is likely to remain the primary driver of USD/JPY's action. On Thursday, investors will be focused on FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium.

Technical levels to watch for

USD/JPY

Overview
Today last price	106.46
Today Daily Change	0.07
Today Daily Change %	0.07
Today daily open	106.39

Trends
Daily SMA20	105.93
Daily SMA50	106.58
Daily SMA100	107.07
Daily SMA200	108.02

Levels
Previous Daily High	106.58
Previous Daily Low	105.87
Previous Weekly High	106.68
Previous Weekly Low	105.1
Previous Monthly High	108.16
Previous Monthly Low	104.19
Daily Fibonacci 38.2%	106.31
Daily Fibonacci 61.8%	106.14
Daily Pivot Point S1	105.98
Daily Pivot Point S2	105.58
Daily Pivot Point S3	105.28
Daily Pivot Point R1	106.69
Daily Pivot Point R2	106.99
Daily Pivot Point R3	107.39

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.

EUR/USD meets initial support around 1.1800

EUR/USD remains on the back foot, although it has managed to reverse the initial strong pullback toward the 1.1800 region and regain some balance, hovering around the 1.1850 zone as the NA session draws to a close on Tuesday. Moving forward, market participants will now shift their attention to the release of the FOMC Minutes and US hard data on Wednesday.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold remains offered below $5,000

Gold stays on the defensive on Tuesday, receding to the sub-$5,000 region per troy ounce on the back of the persistent move higher in the Greenback. The precious metal’s decline is also underpinned by the modest uptick in US Treasury yields across the spectrum.

RBNZ set to pause interest-rate easing cycle as new Governor Breman faces firm inflation

The Reserve Bank of New Zealand remains on track to maintain the Official Cash Rate at 2.25% after concluding its first monetary policy meeting of this year on Wednesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.