USD/JPY analysis: en route to test yearly highs
|USD/JPY Current price: 112.44
- Yen accelerated its slump on better market mood, US inflation.
- USD/JPY headed toward yearly high at 113.38.
The USD/JPY pair traded as high as 112.61, a level last since early January, as the better market mood added to the bullish momentum of the pair after it broke above 112.00 on Wednesday. Stocks were up worldwide on ebbing trade war concerns, and a recovery in US Treasury yields, helped by the country's inflation that posted its biggest annual gain since February 2019, also underpinned the rally. During the upcoming Asian session, Japan will release Capacity Utilization and Industrial Production figures for May, with the first since declining 1.2% and the second rising 6.0% annually. The upward momentum eased, but the pair is still in bullish territory, with a key support being now the 111.40 level, May's monthly high. Short term, and according to the 4 hours chart, the price is developing well above its 100 and 200 SMA, which slowly gain upward traction far below the current level, and therefore losing relevance, while technical indicators remain in overbought territory, the Momentum easing from its high, but the RSI stable at around 72. Steady gains above 112.60, the immediate resistance, will open doors for a continued rally toward the yearly high set last January at 113.38.
Support levels: 112.15 111.80 111.40
Resistance levels: 112.60 113.00 113.40
View Live Chart for the USD/JPY
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