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USD/JPY drops to session lows near 118.80

FXStreet (Mumbai) - The US dollar edged lower versus the Japanese counterpart in the European morning, bringing an end to the side trend seen in the Asian trading, as the US dollar lost footing against its major rivals and resumed its downslide seen in the US last session following poor US macro fundamentals.

USD/JPY back below 119

Currently, the USD/JPY pair trades lower by -0.12% at 118.90 levels, having posted day’s lows at 118.82 and day’s high at 119.14 so far. The USD/JPY pair fell in red this morning largely as the longer duration and shorter duration yields on the US treasuries slipped back in to red after a brief recovery seen in Asia, dragging the greenback lower.

On Wednesday, USD/JPY bounced-off 119.50 levels and dropped below 119 handle following a tepid batch of US figures including US housing starts, building permits and unemployment claims data , undermined the dollar's performance.

Meanwhile, in the day ahead, all eyes sre set on US CPI figures and consumer sentiment data as well for fresh cues.

USD/JPY Technical Levels

To the upside, the next resistance is located at 119.49 (April 16 High) levels and above which it could extend gains 119.76 (April 15 High) levels. To the downside immediate support might be located at 118.77 (April 16 Low) below that at 118.50 levels.

Czech Republic Producer Price Index (MoM) rose from previous -0.1% to 0.5% in March

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