USD/JPY Current price: 112.42

  • Yen bulls kept unwinding positions overnight, sending USD/JPY to its highest since January.
  • US June inflation expected to reaffirm Fed's tightening path.

The Japanese yen continued to be smashed during Asian trading hours, with the USD/JPY pair reaching 112.45, its highest since early January. The dollar remains strong but didn't break any relevant level against other major rivals, suggesting that speculative interest is driving the move, particularly considering the risk-averse environment triggered by an escalation in the trade war. In the meantime, risk-related sentiment has improved, with Asian and European indexes up this Thursday, although there's no guarantee that this situation will last.

The US will release today its June inflation figures, expected to have advanced modestly from May's readings. Rising inflationary pressures will support Fed's case of rising rates, but won't modify it. The core CPI is expected to have risen 0.2% MoM and 2.9% YoY. Strong figures will likely keep the pair on the bullish side, despite the upward move is overstretched.

The pair trades a couple of pips away from the mentioned multi-month high, as bulls won't give up,  suggesting that the rally will likely continue, despite the extreme overbought conditions seen in intraday technical indicators, as in the 4 hours chart, both hold in extreme levels, without directional momentum. The 100 and 200 SMA gain upward traction well below the current level, still irrelevant after a long period of consolidation. The immediate resistance is now the 112.60 region, with gains beyond it putting the pair once step closer to its target, 113.38, this year high set early January.

Support levels: 112.15 111.70 111.25

Resistance levels: 112.60 113.00 113.40

View Live Chart for the USD/JPY

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD: Extra gains in the pipeline above 0.6520

AUD/USD: Extra gains in the pipeline above 0.6520

AUD/USD partially reversed Tuesday’s strong pullback and regained the 0.6500 barrier and beyond in response to the sharp post-FOMC pullback in the Greenback on Wednesday.

AUD/USD News

EUR/USD meets support around 1.0650

EUR/USD meets support around 1.0650

EUR/USD managed to surpass the key 1.0700 barrier in response to the intense retracement in the US Dollar in the wake of the Fed’s interest rate decision and Chair Powell’s press conference.

EUR/USD News

Gold surpasses $2,300 as Dollar tumbles

Gold surpasses $2,300 as Dollar tumbles

The precious metal maintains its constructive stance and trespasses the $2,300 region on Wednesday after the Federal Reserve left its FFTR intact, matching market expectations.

Gold News

Bitcoin price reclaims $59K as Fed leaves rates unchanged

Bitcoin price reclaims $59K as Fed leaves rates unchanged

The market was at the edge of its seat on Wednesday to see whether the US Federal Reserve (Fed) would cut interest rates during the Federal Open Market Committee (FOMC) meeting. 

Read more

The market welcomes the Fed's statement

The market welcomes the Fed's statement

The market has welcomed the Fed statement, and the S&P 500 is higher in its aftermath, the dollar is lower and Treasury yields are falling. There is still only one cut priced in by the Fed.

Read more

Majors

Cryptocurrencies

Signatures