USD/JPY retreats from 110.00 on USD weakness
- USD/JPY prints mild losses on Tuesday in the initial Asian trading hours.
- US Dollar Index remains under pressure near 93.00 on risk aversion and weaker data.
- A downtick in the US bond yields undermines the demand for the US dollar.
The depreciative move in the US dollar keeps the USD/JPY pair on the edge in the Asian session. After touching the high of 110.14, USD/JPY refreshed the daily low near 109.75.
At the time of writing, USD/JPY is trading at 109.68, down 0.07% for the day.
The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades near 93.00 with 0.47% losses as weaker data dampens the Fed’s tapers plan.
The IHS Markit US Manufacturing PMI dropped 61.2 in August from 63.1 in July, much below the market forecast of 62.5. The reading pointed at the slowest growth in factory activities in the previous four-month.
The US 10-year benchmark Treasury yields trade modestly lower at 1.25%
On the other hand, the Japanese Yen tracked lower on downbeat economic data. The au Jibun Bank Japan Service fell sharply to 43.5 in August from a final 47.4 in the previous month.
The downside is capped in the currency on the optimism induced by the government’s efforts to step up vaccinations by starting administration AstraZeneca’s virus vaccine from Monday.
As for now, investors wait for the US New Home Sales data to gauge market sentiment.
USD/JPY additional levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
