Daily recommendations on major – USD/JPY
|
Update Time: 10 Jun 2021 09:30GMT
USD/JPY - 109.49
Despite the greenback's brief rise to a fresh 2-month peak at 110.33 on Friday, subsequent selloff to 109.20 Monday on downbeat U.S. NFP data suggests recent erratic move has made a temporary top there and consolidation with downside bias remains for a stronger retracement to 109.04, however, near term loss of momentum would keep price above support at 108.57 and yield rebound later.
On the upside, only above 110.15 would indicate aforesaid pullback has ended and brought re-test of said resistance.
On the data front, the market's main focus this week is the release of U.S. inflation data, namely CPI n core CPI later today (please see our EI page for details).
Although the street forecast for May annual CPI to be 4.7% vs previous reading of 4.2%, if the actual figure comes in lower than estimate, then expect renewed USD's selling.
On the flip side, if it's higher, U.S. yields will jump and would push the pair higher to 110.00/10.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.