USD/JPY aims to retest 113.0 after FOMC minutes

  • Encouraging data out of the US, FOMC minutes lifts USD/JPY
  • USD/JPY technicals still suggests limited buying interest

USD/JPY has reached new session highs at the open of business in Tokyo, testing offers at 112.70 after the FOMC minutes/upbeat US data-induced rebound from Wednesday. 

USD/JPY fueled by upbeat US data, FOMC minutes

As Valeria Bednarik, Chief Analyst at FXStreet, notes: "The USD/JPY pair advanced up to 112.57 this Thursday, as stronger-than-expected US data lifted the greenback against its Japanese rival, later fueled by the release of FOMC Minutes. Not that the document surprised investors, but after the release, US Treasury yields recovered the ground lost earlier on the day, helping the pair to extend its daily gains. "

USD/JPY technicals

Technically, Valeria adds: "In the meantime, the risk is still skewed toward the downside as the pair can't move far above the critical 112.00 mark, while in the 4 hours chart, the price remains below its 100 and 200 SMAs, pressuring this last from below. In the same chart, the RSI indicator advances within negative territory, while the Momentum holds flat around its 100 level, indicating that buying interest remains limited around the pair."

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