USD/JPY slides further below 112.00 ahead of FOMC minutes

• US dollar drops across the board. 
• DXY near November lows. 
• Key event ahead: FOMC minutes at 19:00 GMT. 

The USD/JPY pair accelerated the decline during the American session, particularly after breaking below Monday’s low. It bottomed at 111.49, the lowest level since late October. It remains near the lows, ahead of the release of the FOMC minutes, weakened by a sell-off of the greenback. 

The tone around the US dollar turned negative after the release of economic data. US durable goods orders showed an unexpected contraction in October of 1.2% against an expected 0.3% rise. Jobless claims data and consumer confidence came in slightly above expectations. Market attention now turns to the release of the FOMC minutes of the latest meeting.  

Lower US bond yields and a retreat in Wall Street added bearish momentum to the USD/JPY. The 10-year yield fell from 2.37% to 2.33%. While the Dow Jones that opened with gains was falling 0.20%. 

Technical levels 

To the downside support levels might be located 111.05/10, followed by 110.70 (Aug 31 high). On the upside, the FXStreet’s Technical Confluence indicator notes congestion areas around 111.80, 112.45 and 112.70/80.