- USD/JPY gained traction after dropping below 104.00 on Monday.
- US Dollar Index rises toward 92.00 in American session.
- Wall Street’s main indexes trade deep in the negative territory.
The USD/JPY pair dropped to a fresh weekly low of 103.83 on Monday but reversed its direction during the American trading hours. As of writing, the pair was trading at 104.35, gaining 0.27% on a daily basis.
DXY recovers toward 92.00
The broad-based USD weakness caused USD/JPY to push lower during the first half of the day. However, after major equity indexes in the US started the day in the negative territory, the US Dollar Index (DXY) turned north and staged a decisive rebound.
Additionally, month-end flows and profit-taking seem to be providing an additional boost to the greenback. As of writing, the DXY, which is down more than 2% in November, was posting small daily gains at 91.89.
Earlier in the day, the data from the US showed that the ISM Chicago’s PMI fell to 58.2 in November from 61.1 in October and Pending Home Sales declined by 1.1% in October. Nevertheless, market participants largely ignored these readings.
Meanwhile, the poor performance of Wall Street’s main indexes seems to be allowing the USD to remain strong against its peers. At the moment, the Dow Jones Industrial Average and the S&P 500 indexes are losing 1.2% and 0.78%, respectively.
On Tuesday, Unemployment Rate and Jibun Bank Manufacturing PMI data will be featured in the Japanese economic docket.
Technical levels to watch for