USD/JPY hits six day lows under 114.00

• Japanese yen among top performers as US yields remain steady.
• DXY down for the day but off lows.
• USD/JPY heads for lowest daily close in a month.

The USD/JPY dropped further during the American session and bottomed at 113.95, the lowest level in six days. The move lower took place amid a stronger Japanese yen across the board and despite higher equity prices in Wall Street.

Unexpected increase in Jobless Claims

Economic data from the US showed Initial Jobless Claims came in at 286K, the highest level in three months, the Philadelphia Fed Business Outlook rose more than expected to 23.2 from 15.4 and Existing Home Sales dropped 4.6% in December. The numbers weighed on the US dollar and supported the recovery in equity prices.

Next week, the Federal Reserve will have its two day meeting, announcing their decision on Wednesday. Market participants await signs for a March rate hike. The greenback has been rising on the back of those speculations, losing momentum early in January.

The USD/JPY is correcting lower and a daily close below 114.00 should point to further weakness from a technical perspective. The next support stands at 113.50. On the upside, a recovery above 114.95 (20-day moving average) would be a sign that the correction is over

Technical levels