USD/JPY drops further under 110.00, toward daily lows

By FXStreet The Japanese yen strengthened across the board during the last hours and pushed USD/JPY further to the downside. The pair moved off daily highs and fell toward the lows despite better-than-expected US economic data.

US down, data up

Earlier, jobless claims and durables goods order showed stronger-than-expected numbers, although some details in core order were negative. Recently the pending home sales numbers showed a rise of 5.1% in April, sharply above the 0.6% expected gain. The housing data failed to boost the US dollar that retreated further against the yen.

USD/JPY accelerated to the downside below 109.90, where the 20-hour moving average stands and recently fell to 109.50. It was trading near American session lows, moving with a bearish intraday bias, but still on top of daily lows that reached at 109.39, on Asian hours.

Sideways but still a bullish bias

The pair continues to move sideways around 109.90, as it has been the case since last Friday, but the bias points to the upside in the short-term. Price is holding above an uptrend line (with origin at May 12 lows) that currently stands at 109.25/30; a consolidation below would expose 109.00 and then 108.70.
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Source:: FX Street