Tuesday, April 4, 2023 2:12 PM EDT
Yen. Image Source: Pixabay
The USD/JPY fell sharply after the release of US economic data pointed to a slowdown. The pair tumbled from 132.80 to 131.53, reaching the lowest since March 29.
The pair remains under pressure under 131.80, with the US Dollar weaker across the board. The DXY is falling 0.48%, trading at 101.57, on its way to the second-lowest daily close since May 2022.
The JOLTs report showed a decline to 9.9 million job openings, the lowest reading in two years. In a different report, Factory Orders dropped for the second month in a row, by 0.7% below the slide expected of 0.5%. The ADP Employment report and the ISM Service Sector PMI are due on Wednesday.
After the reports, US yields sank. The US 10-year yield dropped to 3.35% and the 2-year to 3.84%. The moves in the bond market boosted the Japanese currency which rose across the board.
Technical indicators in USD/JPY 4-hour chart point to another test of the daily lows around 131.50. A break lower would expose the next support that is seen at the 131.10 area. The Dollar needs to regain levels above 132.50 to alleviate the bearish pressure.
Technical levels
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