The price movement of USD / JPY was moving around yesterday morning. That was because the US dollar found a direction to follow the newest data happened in the market.
The interesting thing about that increase is that USD is trying to move although there is a better monthly retail sales than the expectation and the weekly jobless claim report.
The main retail sales number increased by 9.8 percent higher from month to month because the American dollar followed the newest data happened in the market. It was higher than the market expectation.
So far, that expectation was only 5.8%. The jobless claim is also solid at 576000 versus the consensus of 700000. Those strong numbers may come back again after the added stimulus checking.
The Detail of USD / JPY Movement
Furthermore, the successful vaccine launch and the re-opening USA economic also become one of the supporters of that condition. The price movement of USD / JPY stated clearly from a data.
Based on that data, the pair appears in 18 pips soon after it was released. However, the main currency pair has been exploring again most of the movements so far. There is one more thing to know.
The lack of direction for USD is related to the decline in all yield treasury result. The 10Y type is now sold under the 160 point base. However, the strong economy data released yesterday brought another sign.
That may make the USD / JPY strengthening can be looked to maintain the technical support around the price level of 108.70. It also supports the US dollar to move higher than before.
Dollar Faces The Technical Resistance
It is a fact that the US dollar is experiencing the technical resistance. That may be caused by the declining trend line which is longer through the highest arrangement which is lower lately.
Replacing that obstacle can be difficult if the treasury result is still under the pressure. In addition, USD is in a direction to experience its worst weekly decline this week. It is the possibility.
That was happened in the middle of a long-term decline in Treasury yield. The cause is that the investors really trust the Federal Reserve decision to maintain the accommodative policy attitude.
It is especially to keep it for a little longer. The 10-year Treasury yield result fall down to the lowest level in 1.528%. It moved further than the highest level in a year or at 1.776% reached last month.
The US Economy Based on The Fed
Mary Daly as the Fed San Francisco President said at the same day that the American economic is still far from making the substantial progress. That goes to the Central Bank aims about inflation.
The value is around 2% which it becomes the limit made by that organization to start considering about reducing its support for economic. That also supports the comment from Jerome Powell.
It is especially in his speech in this last week. He said that the policy maker will see through the short-term price increase amidst the slow movement which is happening in the employment market.
Index of Dollar Falls Down
The index of USD whic measures greenback to other six currencies slipped down and it reached the lowest level for almost a month. That was in 91.487 on Thursday before getting stable.
The stable level is 91.654 in the European Session. Furthermore, the America dollar has been experiencing the decline of 0.5 percent for this week. It makes the trend of that main currency is longer.
Before, USD was known experiencing a decline by 0.9 Percent. That happened last week and still makes that currency is in not a good condition until now.
