FxWirePro: US dollar under selling pressure after weak PMI and New Home Sales data, USD/JPY slumps below 137 handle

Chart - Courtesy Trading View 

Spot Analysis:

USD/JPY was trading 0.84% lower on the day at 136.25 at around 15:35 GMT

Previous Week's High/ Low: 137.22/ 132.55

Previous Session's High/ Low: 137.64/ 136.69

Fundamental Overview:

US dollar came under heavy selling pressure after the disappointing PMI surveys and New Home Sales data.

The data published by S&P Global on Tuesday showed US Manufacturing PMI declined to 51.3 from 52.2 and the Services PMI plunged to 44.1 from 47.3, both missing forecasts. The Composite PMI fell to 45 from 47.7. 

Further, US New Home Sales decline by 12.6% to 511,000 in July, the data published jointly by the US Census Bureau and the Department of Housing and Urban Development showed on Tuesday. 

Technical Analysis:

- USD/JPY erased the day's gains and slipped into the red after dismal data

- The pair snapped at 5-day bullish streak

- Price action has retraced back into the daily cloud

- GMMA indicator shows major and minor trend are bullish

Major Support and Resistance Levels:

Support - 134.95 (200H MA), Resistance - 137.51 (Upper BB)

Summary: USD/JPY snaps uptrend after dismal data. Technical bias still remains bullish. Cloud below cloud top could drag the pair lower.