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31 Jul 2015
USD/JPY drops to 123.50 on weaker dollar
FXStreet (Edinburgh) - The greenback is taking a hit on Friday, sending USD/JPY to the mid-123.00s, or 2-day troughs.
USD/JPY lower post-data
The pair has given away all recent gains after the miserable prints from the Employment Cost Index in the US economy, rising 0.2% - the lowest raise since 1982 – vs. expectations at 0.6%. Spot has quickly left the area of daily tops around 124.30 in the wake of the release along with a deterioration of the performance in US Treasuries.
Further data in the US docket saw the Chicago PMI surprising markets to the upside, printing 54.7 for the current month vs. 50.5 initially forecasted.
USD/JPY levels to consider
The pair is now retreating 0.38% at 123.67 facing the next support at 123.40 (low Jul.29) followed by 123.01 (low Jul.27) and finally 122.50 (low Jul.13). On the other hand, a breakout of 124.37 (high Jul.31) would open the door to 124.58 (high Jul.30) and then 124.82 (high Jun.2).
USD/JPY lower post-data
The pair has given away all recent gains after the miserable prints from the Employment Cost Index in the US economy, rising 0.2% - the lowest raise since 1982 – vs. expectations at 0.6%. Spot has quickly left the area of daily tops around 124.30 in the wake of the release along with a deterioration of the performance in US Treasuries.
Further data in the US docket saw the Chicago PMI surprising markets to the upside, printing 54.7 for the current month vs. 50.5 initially forecasted.
USD/JPY levels to consider
The pair is now retreating 0.38% at 123.67 facing the next support at 123.40 (low Jul.29) followed by 123.01 (low Jul.27) and finally 122.50 (low Jul.13). On the other hand, a breakout of 124.37 (high Jul.31) would open the door to 124.58 (high Jul.30) and then 124.82 (high Jun.2).