USD/JPY bulls take control into the 133s

As per the prior analysis, USD/JPY Price Analysis: Bears need to make their move or lose control in the 133s, the bulls have made their move and the price is now making fresh cycle highs in the 133s. At the time of writing, USD/JPY is 0.5% higher and has made a high of 133.36 so far. 

A slew of data and the Tokyo fix combined have seen the price vault 133 the figure on Friday. Being the end of the month and quarter-end FX fixes, volatility is kicking in while otherwise, as analysts at ANZ Bank said, ´´the focus is shifting away from bank wobbles and back to macroeconomics.´´

In this regard, he February reading of personal consumption expenditures (PCE) on Friday, the Fed's preferred inflation gauge, will be released later today. January figures showed a sharp acceleration in consumer spending so the data will be closely eyed. 

´´Comments from Fed officials have been mixed with Jerome Powell indicating last week that the impact of the recent turmoil in the banking system could be the equivalent of 25bp of tightening,´´ analysts at ANZ Bank said. ´´However other Federal Reserve officials have pointed out that more tightening will be required if inflation risks persist.´´

On Thursday, US data showed that Jobless Claims last week rose more than expected from the week before indicating a cooling labor market, while fourth-quarter Gross Domestic Product growth was slightly lower at 2.6% compared with earlier estimates of 2.7%, both supporting the case for a softer Fed policy.

USD/JPY technical analysis

The bulls are in control on the front side of the trend with the 133.78s eyed. As it stands, a 38.2% Fibonacci retracement comes in near 133 the figure which is still on the front side of the trend.