Japanese Yen: Weakens gradually against US Dollar toward 160.75 – UOB

FXStreet Insights Team FXStreet

UOB’s Quek Ser Leang and Lee Sue Ann describe USD/JPY as range-bound intraday between 159.90 and 160.40 after a brief spike and reversal, but maintain a slightly positive multi-day stance. They see upward momentum building tentatively, with the pair likely to rise gradually toward 160.75 while strong support at 159.60 defines the risk, and longer term highlight scope to test the top of a rising wedge near 161.15.

Dollar Yen bias remains mildly positive

"24-HOUR VIEW: The following are excerpts from our update yesterday: “The slight increase in upward momentum suggests that USD is likely to edge higher to 160.50. The major resistance at 160.75 is unlikely to come under threat. Support is at 160.05; a breach of 159.95 would suggest that the current mild upward pressure has eased.” The subsequent price movements turned out differently than we expected. USD edged to a high of 160.39, dropped to 159.87 before rebounding quickly to close largely unchanged at 160.17 (-0.07%). The price action provides no fresh clues. Today, USD could trade between 159.90 and 160.40."

"1-3 WEEKS VIEW: We revised our view to slightly positive yesterday (08 Jun, spot at 160.25). We highlighted that “upward momentum is building, albeit tentatively.” We also highlighted that USD “could rise gradually, and the level to watch is 160.75.” There is no change in our view. On the downside, a breach of 159.60 (no change in ‘strong support’ level) would mean that upward momentum has faded."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD consolidates above 0.7000/two-month low; bearish potential intact

The AUD/USD pair oscillates in a narrow range during the Asian session, and moves little following the release of mixed inflation figures from China. Spot prices currently trade around the 0.7025 region, nearly unchanged for the day, and remain within striking distance of a nearly two-month low set on Tuesday. Renewed hostilities between the US and Iran temper hopes for a deal to end the over three-month-old war.

Japanese Yen languishes despite wholesale inflation accelerates in May

USD/JPY flatlines after experiencing volatility, trading around 160.40 during the Asian hours on Wednesday. The pair continues to hold its ground, reflecting a struggling Japanese Yen that has failed to find support despite a massive acceleration in wholesale inflation. Driven by surging energy costs linked to the ongoing Middle East conflict, Japan’s Producer Price Index jumped 6.3% year-over-year in May. This hot printing comfortably outpaced April’s upwardly revised 5.3% figure and surpassed market consensus of 5.5%, marking the fastest pace of wholesale price growth in three years.

$4,200: Gold retains bearish bias near March low ahead of US CPI

Gold recovers slightly after touching a fresh low since March 23, though it retains a bearish bias near the $4,200 mark through the early European session. Renewed hostilities between the US and Iran fuel inflationary concerns and bolster bets for more hawkish central banks, which is seen as a key factor driving flows away from the non-yielding yellow metal. Furthermore, the decline could be attributed to technical selling following the recent breakdown below the very important 200-day SMA.

Cardano's downtrend deepens despite on-chain bottoming signals

Cardano edges lower to $0.1600 signaling a potential extension of the 30% loss from last week. The altcoin remains under intense selling pressure, weighing on its retail support. Still, a spike in dormant supply re-entering circulation signals that the selling pressure has run its course, a pattern that often precedes a rebound.

US CPI data set to show inflation at three-year high in May, backing Fed hawkish tilt

The US Bureau of Labor Statistics will publish the May Consumer Price Index (CPI) data on Wednesday. The report is expected to show another step up in consumer inflation, driven by the persistently high Oil prices due to the ongoing crisis in the Middle East.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.