- USD/JPY consolidates daily gins, for the second day in-a-row.
- Yen weakens amid an improvement in risk appetite.
The USD/JPY pair remains in range near the 113.00 area, consolidating a gain of 30 pips for the day. Earlier today, peaked at 113.14 and then bottomed at 112.85, following the release of US data.
Durable Goods Orders dropped in October 4.4% against expectation of a slide of 2.2% and September’s data was revised lower. Later, it was reported that the University of Michigan’s Consumer Confidence Index fell to 97.5 in November from 98.6 in October, also below market expectation of 98.3. The positive data came from existing home sales that rose 1.4% in September. The economic numbers weakened the greenback that was also affected by rumors about a possible pause in the Fed rate hike cycle during Q2.
On the other side, the improvement in risk sentiment kept, pushed the yen lower and limited the downside in USD/JPY. The Dow Jones is up 0.60% and the Nasdaq 1.58%. Crude oil is up by more than 2%.
USD/JPY Levels to watch
To the upside, resistance levels might be located at 113.10/15 (Nov 21 high), 113.35 and 113.65 (Nov 9, 12 low). On the downside, support could be seen at 112.95 (Asian session high), 112.60, 112.40 and 112.30 (Nov 20 low).
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