USD/JPY slips below 110.00 on USD weakness
- USD/JPY prints minute gains on Friday during the initial Asian trading hours.
- US Dollar Index slips below 92.50 on disappointing data.
- Lower US Treasury yields augmented the downside for the US dollar.
The USD/JPY pair remains on the higher edge in the early Asian session. The pair traded above 110.00 in the US session but failed to sustain the momentum.
At the time of writing, USD/JPY is trading at 109.96, up 0.04 % for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades below 92.50 its lowest level in the last month with 0.19% losses.
The US Initial Jobless Claims fell more than expected to 340K. New Orders for manufactured goods edged up 0.4% in July. The Nonfarm labor Productivity rose by an annualized 2.1% in Q2 below the market expectations of a 2.3% increase.
The US 10-year benchmark Treasury yields trade lower at 1.28% with 0.68% losses.
On the other hand, the Japanese Yen managed to gain some traction after the Japanese government announced its long term economic growth by promoting labor productivity, green technology and digitalization.
Meanwhile, Bank of Japan’s (BOJ) Board Member Goushi Kataoka warned the pandemic may weigh on the economy longer than initially expected.
As for now, investors wait for the Japan Jibun Bank Composite PMI, US Nonfarm Payroll, and Unemployment data 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.
