USD/JPY drops further on US data, near 112.80

The greenback met renewed selling pressure following the release of the preliminary Reuters/Michigan index, dragging USD/JPY to fresh 2-week lows near 112.80.

USD/JPY weaker post-US data

The pair dropped further after the preliminary Reuters/Michigan index showed consumer Inflation Expectations rose 2.4% for the current month, the lowest gain since the start of the year.

Further data from the index showed Consumer Sentiment bettering estimates at 86.7 vs. 85.5 expected.

US yields have dropped to session lows in the wake of the release, adding to the pair’s downbeat sentiment.

Markets should now turn the attention to the G20 meeting, which kicks in today and expects key themes like populism, protectionism and FX manipulation to be in the centre of the debate.

USD/JPY levels to consider

As of writing the pair is losing 0.41% at 112.84 and a breakdown of 112.58 (low Feb.17) would aim for 111.67 (low Feb.28) and finally 111.57 (low Feb.7). On the upside, the next hurdle aligns at 113.69 (20-day sma) ahead of 114.03 (55-day sma) and then 114.91 (high Mar.15).