USD/JPY sinks to lows near 113.60 ahead of US data

Pablo Piovano FXStreet

The greenback remains on the defensive so far on Thursday, now dragging USD/JPY to fresh lows in the 113.65/60 band.

USD/JPY attention to US docket

The pair is retreating for the second session in a row today, coming down from Wednesday’s peak in levels just shy of the critical 115.00 handle.

The renewed decline has been fuelled by the persistent unwinding of the Yellen-induced rally in the greenback, echoing in deflating yields in the US money markets, with the 10-year benchmark easing from highs above 2.52%.

Positive results from the US docket on Wednesday plus USD-supportive comments from FOMC’s Harker, Lacker and Rosengren failed to give further continuation to the Dollar’s upside, which stalled around the 101.70 area when tracked by the US Dollar Index.

Later in the NA session, US Housing Starts, Building Permits and the Philly Fed manufacturing index are all due.

USD/JPY levels to consider

As of writing the pair is retreatig 0.45% at 113.64 and a breach of 113.39 (20-day sma) would aim for 113.21 (low Feb.14) and then 112.84 (low Feb.10). On the upside, the next hurdle aligns at 114.97 (high Feb.15) followed by 115.02 (55-day sma) and finally 115.39 (high Jan.27).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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