USD/JPY breaks range and drops to one-month lows near 113.00
- Japanese yen among top performer despite risk appetite and higher yields.
- US dollar weakens across the board during the American session.
- USD/JPY heads for lowest close in a month.
The USD/JPY is falling on Monday for the third day in a row and it reached at 113.07, the lowest level since October 12. It remains near under pressure amid a weaker greenback across the board.
After trading in a range for days, USD/JPY broke to the downside, clearing the way to more losses. The short-term outlook now favors the downside. The next support levels might be seen at 112.95 and 112.10. On the upside, now 113.40 is the immediate resistance. If it rises above 114.40 the US dollar would recover strength, probably resuming the bullish long-term trend.
The move lower in USD/JPY takes place despite a rebound in US yields. The 10-year stands at 1.48% and the 2-year rose to 0.43%. Not even risk appetite is giving support to the pair. The Dow Jones gains 0.36%, at new record levels, while the S&P500 rises by 0.14%.
After a quiet Monday in terms of US economic data, on Tuesday the PPI and on Wednesday the CPI could trigger market moves following last week FOMC meeting. Inflation numbers are likely to influence on expectations about Fed’s monetary policy.
Technical levels