USD/JPY Current price: 112.08
- USD outpaced the JPY in a risk-averse environment, USD/JPY surpasses 112.00.
- US June inflation figures to gather all of the attention this Thursday.
The Japanese yen was the daily loser, as for once, the American dollar beat it on a risk-averse environment. The USD/JPY pair broke above May's high of 111.39 after the release of positive US data, accelerating afterward to reach its highest since early January to hit 112.17. The sudden dollar's strength had no clear catalyst, particularly considering the risk-averse environment, and rumors made the rounds of leaked information about Thursday's US inflation release. Additionally, speculative interest seems to have digested well the latest trade war news, indicating that the US is setting a list of $200B Chinese goods to charge with a 10% tariff. US Treasury yields, which fell with the news are back near their weekly highs, while US equities fell, but are now off their daily lows. There are no relevant news scheduled in Japan for the upcoming Asian session, with all of the attention centered in the mentioned US inflation figures. In the meantime, the pair holds above the 112.00 level, with technical indicators heading sharply north, entering overbought levels almost vertically, in line with additional gains ahead. In the same chart, the 100 and 200 SMA are finally gaining modest upward slopes, but are now too far away from the current price to be relevant. A strong static resistance comes now at 112.30, with a break above the level exposing January's high at 113.38.
Support levels: 111.85 111.40 111.00
Resistance levels: 112.30 112.70 113.10
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 securities. 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 Forex 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.