- The pair comes under selling pressure and drops to 113.70.
- The decline in spot comes ion tandem with lower US yields.
- US preliminary Q3 GDP figures and Powell’s speech next on tap.
Declining yields in the US money markets are now weighing on USD/JPY, motivating it to recede to the 113.70 area, or daily lows.
USD/JPY looks to US data, Fed
The pair has now faded the earlier spike to multi-day highs in the 113.90 area and it has returned to the 113.70 region, turning negative for the day.
The now bearish performance in spot follows the drop in yields of the key US 10-year note to the 3.05% neighbourhood after briefly testing highs beyond 3.06% during early trade.
All eyes are now on the publication of another revision of US Q3 GDP figures ahead of the speech by Fed’s J.Powell later in the NA session. In addition, the US-China trade dispute is expected to regain traction in light of the upcoming meeting between Trump and Xi Jinping at the G20 gathering later in the week.
USD/JPY levels to consider
As of writing the pair is losing 0.01% at 113.77 and a break below 113.34 (21-day SMA) would aim for 113.19 (10-day SMA) and then 112.31 (monthly low Nov.20). On the upside, the initial hurdle aligns at 114.20 (monthly high Nov.12) followed by 114.56 (2018 high Oct.4) and finally 114.74 (monthly high Nov.6 2017).
Share
