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USD/JPY falls to mid-107s as DXY slumps on disappointing ISM PMI data

  • US Dollar Index continues to erase Wednesday's gains.
  • ISM Manufacturing PMI misses market estimate by a wide margin.
  • Wall Street extends slide following a negative opening.

After recovering above the 108 handle in the early NA session, the USD/JPY pair lost its traction, once again, and dropped to the 107.50 area as the greenback met a fresh selling-wave following the disappointing PMI data. As of writing, the pair was down 1.1% on the day at 107.65.

Following the flash crash witnessed in the early Asian session today, the pair was able to correct a large portion of its losses but seems to have lost its momentum. A broad-based USD weakness in the second half of the day makes it difficult for the pair to extend its rebound. Although the ADP private sector employment report surprised to the upside earlier today, the ISM Manufacturing PMI dropped to 54.1 in December from 59.3 in November to weigh on the buck. At the moment, the DXY is down 0.35% on the day at 96.35.

On the other hand, concerns over the negative impact of the economic slowdown of the Chinese on the global economy allow the risk-aversion to dominate the markets and the JPY to stay on the crosshairs. At the moment, the Dow Jones Industrial is losing 27% on the day while the Nasdaq Composite is falling 3% and the S&P 500 is down 2.3% on the day.

In the Asian session on Friday, Nikkei Manufacturing PMI data from Japan will be looked upon for fresh impetus. Later in the day, markets will be closely watching the December NFP report from the United States. 

Technical levels to consider

USD/JPY

Overview:
    Today Last Price: 107.81
    Today Daily change: -1.3e+2 pips
    Today Daily change %: -1.16%
    Today Daily Open: 109.08
Trends:
    Previous Daily SMA20: 111.71
    Previous Daily SMA50: 112.6
    Previous Daily SMA100: 112.33
    Previous Daily SMA200: 111.08
Levels:
    Previous Daily High: 109.76
    Previous Daily Low: 108.71
    Previous Weekly High: 111.41
    Previous Weekly Low: 110
    Previous Monthly High: 113.83
    Previous Monthly Low: 109.55
    Previous Daily Fibonacci 38.2%: 109.11
    Previous Daily Fibonacci 61.8%: 109.36
    Previous Daily Pivot Point S1: 108.61
    Previous Daily Pivot Point S2: 108.13
    Previous Daily Pivot Point S3: 107.55
    Previous Daily Pivot Point R1: 109.66
    Previous Daily Pivot Point R2: 110.24
    Previous Daily Pivot Point R3: 110.72

 

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