USD/JPY tumbles to 2-week lows near 108.50 ahead of US data

The pair comes under downside pressure on dovish Fed.
Yields of the US 10-year note drop to 2.66%, fresh lows.
US PCE, ECI next of relevance in the docket.

Pablo Piovano FXStreet

The better tone in the Japanese safe haven is sustaining another daily pullback in USD/JPY, which has so far met support in the mid-108.00s.

USD/JPY comes down post-FOMC meeting

The pair is down for the second session in a row on Thursday, accelerating the decline in response to the now neutral message from the Federal Reserve at yesterday’s meeting.

The Committee now stressed that further decisions on monetary policy will look to the performance of domestic and overseas fundamentals, while gave no clues regarding the timing of end of the balance sheet run-off.

Data wise today, a plethora of releases should keep the attention on the buck: PCE figures, Personal Income/Spending, Challenger Job Cuts, Initial Claims, New Home Sales and the Employment Cost Index.

USD/JPY levels to consider

As of writing the pair is losing 0.39% at 108.60 and a breach below 107.77 (low Jan.10) would aim for 107.31 (monthly low Sep.8 2017) and then 105.55 (monthly low Feb.16 2018). On the other hand, the next up barrier aligns at 108.94 (21-day SMA) followed by 109.39 (10-day SMA) and then 109.99 (2019 high Jan.10).

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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