- The Japanese yen is one of the best performers while the US dollar remains under pressure.
- The dollar falls again after the economic reports of the United States.
- USD/JPY is down over 200 points but no signs of stabilization seen so far.
The pair USD/JPY it set a new three-month high during the American session on Thursday, following the release of US economic data, at 135.73. Next, he modestly bounced towards the 135.52 zone. It remains under pressure, with the dollar down across the board.
On Wednesday, Federal Reserve Chairman Jerome Powell pointed to a slowdown in rate hikes, as early as December. His comments were not a surprise, but they caused a rally in stocks and Treasuries. The dollar began a decline that is still continuing.
Inflation data released on Thursday showed a slowdown, although still at elevated levels, with core PCE at 5% (yoy) in October, down from 5.2% in September. Personal income and spending increased by 0.7% and 0.8% respectively. Continued claims for jobless benefits increased for the seventh week in a row to reach the highest level since March.
The numbers did not help the dollar and US yields held close to monthly lows, supporting the yen. Even rising stock prices on Wall Street are not offsetting the strength of the yen.
Oversold?
USD/JPY is on track for its lowest daily close since mid-August, falling for the fourth day in a row. The pair is challenging the 136.00 zone and below next support emerges at 135.50. Below is a horizontal line around 134.60 and then the 200-day moving average at 134.40.
At the moment there are no signs of consolidation. Despite the oversold reading on many technical indicators, Momentum remains extremely negative. A bounce above 137.00 could ease the bearish pressure. Above 137.70, the outlook for the dollar could improve (or be less negative).
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
