- US dollar weakens after economic data, even as yields rise.
- Wall Street turns mixed as Nasdaq falls into negative territory.
The USD/JPY is falling for the third day in a row, but so far, it has been able to hold above 109.30. The pair dropped to 109.33 during the American session, and then it rebounded to 109.45.
The dollar is falling against the yen even as US yields trade higher and amid higher-than-expected US economic data. The ISM manufacturing index rose to 61.2 in May from 60.7. On Friday, it will be the turn of the employment report. Equity prices are mixed in the US. The Dow Jones gains 0.40% while the Nasdaq drops by 0.13%.
The DXY is falling modestly at 89.72, after being unable to hold above 89.80. Metals failed to hold to gains and pulled back sharply from weekly highs.
USD/JPY Short-term outlook
The greenback remains near the daily lows, under pressure, and close to the key area of 109.30. A break lower could open the doors to further losses. The next support stands at 109.15, followed by 109.02 (May 27 low). A recovery above 109.60 would alleviate the bearish pressure, while a break above 109.70/75 should point to a stronger greenback.
Technical levels
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