- US dollar up across the board breaks 5-day negative streak.
- Yen fails to benefit from risk aversion and weak US data.
The USD/JPY pair is consolidating daily gains on the back of a stronger US dollar across the board. The pair peaked at 111.28, the highest level in a week. During the last hours, it has been trading in a range, between daily highs and 111.10.
The move to the upside took place at the beginning of the US session. The greenback rose above 111.00 despite weaker-than-expected US data. Also, the yen was unable to benefit from a decline in equity prices. Emerging market currencies are under pressure today, strengthening the US dollar at the moment, and not the yen that usually benefits from lower yields and risk aversion.
Data released today showed the lower-than-expected number in US new home sales and PMIs. Despite the figures, the greenback remained stronger. China’s yuan dropped to the lowest level in a week as USD/CNH approached 6.90 and the greenback is also higher versus emerging market currencies. The market focus now turns to the Jackson Hole symposium.
USD/JPY Levels to watch
To the upside resistance levels might be located at 111.25/30 (daily high), 111.50 and 111.75. On the flip side, support could be seen at 110.90, 110.70 and 110.45.
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