Search ForexCrunch
  • USD/JPY touched its lowest level since March 2018 at 102.60.
  • US Dollar Index closes in on multi-year lows on Tuesday.
  • ISM Manufacturing PMI in US rose to its highest level in more than two years.

After spending the majority of the day fluctuating in a narrow band near 103.00, the USD/JPY came under renewed bearish pressure during the American trading hours and touched its lowest level in nearly 10 months at 102.60. As of writing, the pair was down 0.43% on the day at 102.67.

DXY extends slide as US stocks gain traction

The selling pressure surrounding the greenback intensified in the second half of the day and forced USD/JPY to push lower. The upbeat data from the US helped risk flows start dominating financial markets and Wall Street’s main indexes turned north after starting the day little changed. At the moment, the S&P 500 Index is up 0.5% on the day and the US Dollar Index is losing 0.47% at 89.44, slightly above the multi-year low it set at 89.42 on Monday.

The ISM Manufacturing PMI in the US rose to its highest level since August 2018 at 60.7 in December from 57.5 in November and beat the market expectation of 56.6 by a wide margin.

Later in the session, Chicago Federal Reserve President Charles Evans and New York Federal Reserve President John Williams will be delivering speeches.

In the early Asian session, the Japanese economic docket will feature Jibun Bank Services PMI and Consumer Confidence Index data for December.

Technical levels to watch for