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USD/JPY extends fall amid weak data and lower US yields

FXStreet (San Francisco) - The US dollar is trading under pressure amid weaker than expected housing and PMI services data in the United States as well as lower US yields. The USD/JPY is extending declines to 107.60 area after breaking previous lows of 107.70.

Services PMI declined to 57.3 in October; more than 58.0 expected and lowest since April. The pending home sales index rose 'only' 0.3% in September, below 0.5% increase expected.

US 10-year yield is now trading at 2.243% after declining from 2.298% daily high amid weak US data. As Omkar Godbole from FXStreet points out, "the yield has an immediate resistance at 2.3%, while the support is located at 2.229% (Oct 24th low)."

Currently, USD/JPY is trading at 107.70, down -0.42% on the day, having posted a daily high at 108.37 and low at 107.65. The hourly FXStreet OB/OS Index is showing neutral conditions, alongside the FXStreet Trend Index which is slightly bearish.

USD/JPY sentiment

The USD/JPY is trading down amid US data and affected by US yields; however, "the ECB announce their ABS spending spree thus far at the bottom of the hour," points out Ryan Littlestone from ForexLive. There shouldn’t be too much market reaction as there’s not much to gauge how they should be doing. That won’t stop some from having a guess at what they think the ECB should be doing so bear it in mind."

Short term supports are at 107.60, 107.45 and 107.35. To the upside, resistances are at 07.90, 108.00 and 108.35.

United States Dallas Fed Manufacturing Business Index dipped from previous 10.8 to 10.5 in October

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