Will Dollar/Yen continue to fall?
Author
Richard Perry
Independent Analyst
Richard Perry, Independent Market Analyst, has over 20 years of experience working in financial markets in London.
The EUR/USD pair gathers strength to around 1.1575 during the early Asian trading hours on Friday. The Euro edges higher against the US Dollar on the European Central Bank interest rate hike and improved risk sentiment.
The GBP/USD pair struggles to capitalize on the previous day's sharp intraday rally of over 100-pips and edges lower during the Asian session on Friday. Spot prices currently trade near the 1.3400 mark as investors keenly await further developments surrounding the Middle East crisis and the UK macro data dump.
Gold is seen consolidating the previous day's strong recovery from the YTD low and trading comfortably above $4,200 during the Asian session on Friday. Despite Trump's claim that a peace deal with Iran has been approved, a standoff over the Strait of Hormuz and Tehran's frozen funds keep a lid on the latest optimism. Furthermore, traders are still pricing in a greater chance of a rate hike by the Fed in 2026 amid sticky inflation, which helps revive the US Dollar demand and caps the upside for the bullion.
Bitcoin steadies its recovery on Thursday, edging higher toward $63,000 despite incessant capital outflows. Meanwhile, altcoins, including Ethereum and Ripple, exhibit subtle rebound signs, trading above $1,650 and $1.12, respectively.
May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.
![USDJPY Analysis: Support at 110.35/109.35, resistance at 111.20/111.55 [Video]](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/USDJPY/close-up-bank-note-of-japanese-5000-yen-44653096.jpg)
