The parity failed at the 110.00 psychological level, and the US President Donald Trump fell by around 40-pips from his summit after the threat of government shutting down the Mexican border wall funding. Trump’s comments triggered risk appetite and supported the Japanese Yen’s safe harbor view.
In the meantime, the Japan Flash Manufacturing Purchasing Managers Index data, which came on top of today’s expectations, supported the local currency and contributed to the rapid tracking back of the parity at higher levels.
But the downturn has been limited by the looks of investors’ aggressive US dollar bets starting before Fed Chairman Yellen’s talk at the Jackson Hole Symposium, at least for now.
On the data front, the new home sales data from the US is expected, while the broad-based risk sentiment may act as the main driver of the movements of the parity in the European trading session.
The USD / JPY pair is currently trading at 109.38 with a 0.17% loss.
Significant technical levels for USD / JPY
Resistance at 110.95 level may support for 109.00 (psychological level) level parity.