USD/JPY drops to daily lows near 105.70 as USD selloff intensifies
- USD/JPY broke below its daily trading range in the American session.
- Wall Street's main indexes opened higher for the third straight day.
- US Dollar Index continues to push lower toward 93.00.
The USD/JPY pair came under a renewed bearish pressure in the last hour and dropped to a daily low of 105.68. As of writing, the pair was down 0.3% on the day at 105.70. Despite the recent decline, USD/JPY continues to cling to modest weekly gains.
DXY looks to end the week on the back foot
The selling pressure surrounding the greenback intensified in the early American session and caused USD/JPY to turn south. The US Dollar Index (DXY) started to push lower after Wall Street's main indexes opened in the positive territory for the third straight day on Friday. At the moment, the DXY is down 0.45% on the day at 93.14 while the S&P 500 and the Nasdaq Composite gain 0.4% and 0.9%, respectively.
Despite a lack of fresh developments surrounding the stimulus negotiations in the US, investors seem to be staying hopeful that lawmakers will be able to pass standalone bills ahead of the election to support the economy.
The only data from the US showed that Wholesale Inventories in August rose by 0.4% but was largely ignored by the market participants.
There won't be any other macroeconomic data releases in the remainder of the day and the USD's market valuation is likely to continue to drive the pair's movements.
Technical levels to watch for