USD/JPY dips to lows post-US data

The Japanese Yen has now accelerated its upside vs. the greenback, sending USD/JPY to fresh daily lows in the mid-101.00s.

USD/JPY lower on data, risk aversion

The prevailing risk-off theme has been supporting the demand for the safe haven JPY since early trade, prompting spot to shed more than 1% to the current 101.55/50 band.

The pair has dropped further after US Factory Orders missed expectations during May, contracting at a monthly 1.0% and reverting April’s 1.8% gain. The focus has now shifted to post-Brexit lows around the 99.00 handle, as JPY has fully recovered last week losses to the 103.40 area.

USD/JPY levels to consider

As of writing the pair is retreating 1.05% at 101.49 facing the immediate support at 99.08 (2016 low Jun.24) ahead of 96.55 (monthly low Oct. 8 2013) and then 95.70 (monthly low Aug.8 2013). On the flip side, a break above 104.34 (20-day sma) would aim for 106.85 (high Jun.24) and finally 107.34 (55-day sma).