FXStreet (Córdoba) – The US dollar rose modestly in the market after Wall Street opening bell and following the latest round of US economic data that showed an increase in the Philadelphia Fed Manufacturing Index above expectations and also in the CB Leading Indicator Index.
USD/JPY bottomed at 122.47, the lowest level in a week after the CPI reading of May (+0.4% vs +0.5% expected) and a decline in jobless claims, but then rebounded and currently trades at 123.07, still down for the day but far from the lows.
USD/JPY decline capped by June low
From yesterday’s highs the pair dropped 200 pips and found support above 122.40 where June lows are located. The mentioned area has become the key short-term support. A break lower would send USD/JPY to the lowest in three weeks.
Stocks are rising sharply in the US. The Nasdaq Index reached a new record high and it was up 1.17%. US government bonds reversed and now are falling, with the 10-yr yield at 2.353%. Risk appetite and rising yields weakened the demand for the Japanese yen in the currency market.
(Market News Provided by FXstreet)