USD/JPY drops below 110.00 after uninspiring US data
- USD/JPY is edging lower for the second straight day on Tuesday.
- Durable Goods Orders in US rose less than expected in June.
- US Dollar Index stays in the negative territory near 92.50.
The USD/JPY pair came under renewed bearish pressure in the early American session on Tuesday and touched its lowest level in a week at 109.88. As of writing, the pair was down 0.4% on a daily basis at 109.90.
Falling US T-bond yields, uninspiring data hurt USD
The broad-based USD weakness seems to be weighing on USD/JPY in the second half of the day. The data published by the US Census Bureau showed on Tuesday that Durable Goods Orders rose by 0.8% on a monthly basis in June. With this reading missing the market expectation for an increase of 2.1%, the US Dollar Index edged lower and was last seen losing 0.18% at 92.47.
Other data from the US showed that the Housing Price Index arrived at +1.7% in May, compared to analysts' estimate of 1.8%.
In the meantime, the 10-year US Treasury bond yield is losing 4.4% on the day, putting additional weight on USD/JPY's shoulders.
Earlier in the day, Bank of Japan (BoJ) Governor Haruhiko Kuroda said that the BoJ's 2% inflation target has resulted in Japan's economy no longer being in a deflationary situation. "Corporate profits and growth rates have much improved, compared to the era of deflation," Kuroda added but these remarks had little to no impact on USD/JPY's movements.
On Wednesday, the FOMC will announce its Interest Rate Decision and publish the Monetary Policy Statement.
Technical levels to watch for