USD/JPY aims six-year high to near 125.00 ahead of BOJ’s Kuroda speech
|- USD/JPY is eyeing to reclaim a six-year high at 125.10 as investors await BOJ’s Kuroda speech.
- The DXY is uncertain ahead of the US CPI numbers, which are due on Tuesday.
- A bearish gap open has been capitalized by the market participants as a potential buying opportunity.
The USD/JPY pair is advancing towards the six-year high at 125.10, which was printed in March. The pair is driving higher sharply after a bearish gap opening on Monday. The asset is elevating sharply in early Tokyo, which resembles a bullish open-drive session going forward. A bullish open-drive session indicates optimism toward the asset by the market participants, right from the first auction of a trading session.
USD/JPY is following the footprints of the US dollar index (DXY) as the latter also has a bearish gap down opening and is looking to reclaim the psychological figure of 100.00. The reason behind the volatile move of the mighty greenback is the uncertainty over the US consumer Price Index (CPI), which will be reported by the US Bureau of Labor Statistics on Tuesday. Market estimates are on the higher side at 8.3%, which are indicating that the Federal Reserve (Fed) will adopt a tight policy environment along with a swift balance sheet reduction to contain the inflation mess.
Meanwhile, the speech from the Bank of Japan (BOJ)’s Governor Haruhiko Kuroda will be the major event on Monday, which will dictate the likely monetary policy action by the BOJ on April 28. It is worth noting that the BOJ kept its monetary policy unchanged in March amid lower inflation in Japan.
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