USD/JPY breaks below 112.00 mark post-US durable goods

   •  Durable goods orders unexpectedly contracted in October. 
   •  Weekly jobless claims bettered expectations.
   •  FOMC decision holds the key.

The greenback selling remained unabated, with the USD/JPY pair breaking below the 112.00 handle and retesting one-month lows during the early NA session.

The already weaker sentiment around the US Dollar deteriorated further following the release of weaker-than-expected US durable goods orders data, coming in to show m-o-m contraction by 1.2% in October as against a modest growth of 0.3% expected. 

Meanwhile, core durable goods orders (excluding transportation items) also fell short of consensus estimates and exerted some fresh downward pressure on the greenback.

The negative effect, to some extent, seems to have been negated by better-than-expected weekly jobless claims and investors' reluctance to place aggressive bets ahead of the highly anticipated FOMC meeting minutes, due later during the NY trading session. 

Technical outlook

"Short term, an according to the 4 hours chart the risk leans towards the downside, although indicators lack directional strength, the Momentum around its 100 level and RSI at 36, as the price develops well below its moving averages. Below the 111.90, the pair has scope to extend its decline toward 111.20" writes Valeria Bednarik, American Chief Analyst at FXStreet.