“¢ The USD loses some ground after softer than expected PPI figures.
“¢ Bearish traders tracked a weaker tone around the US bond yields.
“¢ Positive equities did little to provide any positive impetus.
The USD/JPY pair held on to its weaker tone through the early North-American session and refreshed session lows post-US data.
The pair struggled to build on its recent strong up-move, witnessed over the past three trading sessions, and seemed rather unaffected by a goodish pickup in the US Dollar demand through the mid-European session.
Meanwhile, the USD up-move started losing steam following the release of latest US PPI figures, coming in to show that the price of finished goods and services sold by producers declined by 0.1% m/m in August.
The yearly PPI print also disappointed and fell more than expected to 2.8% as compared to 3.3% previous. Meanwhile, core PPI, excluding food and energy, also contracted by 0.1% m/m and the yearly pace also dropped to 2.7%, which eventually exerted some fresh downward pressure in the last hour.
Bearish traders also tracked weakness surrounding the US Treasury bond yields and largely shrugged off a mildly positive tone around equity markets, which tends to weigh on the Japanese Yen’s safe-haven appeal.
Technical levels to watch
Immediate support is pegged near the 111.30-25 region and is followed by the 111.00 handle, which if broken might negate prospects for any further near-term up-move. On the flip side, momentum beyond the 111.70-75 immediate resistance now seems to lift the pair beyond the 112.00 handle towards the 112.15-20 supply zone.
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