- USD/JPY remains muted after the previous day’s slump on Wednesday.
- Lower US Treasury yields undermine the demand for the US dollar.
- US Dollar Index recovers from the daily lows toward 92.70.
After testing the weekly lows in the American session, USD/JPY manages to push above 109.70 in a 20-pip movement. The disappointing US Consumer Price Index (CPI) induced broad-based USD selling pressured the USD/JPY near the higher levels. At the time of writing, USD/JPY is trading at 109.70, up 0.01% for the day.
The USD/JPY pair fell from the high of 110.16 on Tuesday following the sell-off in the greenback. The US Dollar Index (DXY), which tracks the performance of the buck against the basket of six major currencies retreated from the high of 92.66 to the test low of 92.29 before staging an advance back to the 92.60 level.
The US benchmark Treasury yields retreated on Tuesday after inflation data showed a slightly smaller-than-expected rise in prices. The yield on the 10-year Treasury bond fell 4.7 basis points to 1.277% before recovering towards 1.28%.
The CPI data came at 5.3% in August on a yearly basis slightly below the market expectations of 5.4%. Investors assessed the readings as a signal that Fed would not raise the interest rate any sooner.
On the other hand, the Japanese Yen gains on its safe-haven appeal as the optimism induced after the report that Japan is on track to reach the vaccination levels of the US and Europe.
As for now, traders are waiting for the Japanese Machine Orders, US Trade data, and Industrial Production data to gauge the market sentiment.
USD/JPY additional levels
|Today last price||109.72|
|Today Daily Change||-0.27|
|Today Daily Change %||-0.25|
|Today daily open||109.99|
|Previous Daily High||110.16|
|Previous Daily Low||109.84|
|Previous Weekly High||110.45|
|Previous Weekly Low||109.62|
|Previous Monthly High||110.8|
|Previous Monthly Low||108.72|
|Daily Fibonacci 38.2%||110.04|
|Daily Fibonacci 61.8%||109.96|
|Daily Pivot Point S1||109.83|
|Daily Pivot Point S2||109.67|
|Daily Pivot Point S3||109.51|
|Daily Pivot Point R1||110.15|
|Daily Pivot Point R2||110.32|
|Daily Pivot Point R3||110.48|
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.