USD/JPY extends the rally above 156.00, eyes on US PPI data

USD/JPY extends its upside near 156.20 in Tuesday’s early Asian session.
Investors will monitor the US PPI figure on Tuesday, which is estimated to rise 2.2% YoY in April.
The BoJ cut the amount of Japanese government bonds it offered to buy in a regular purchase operation.

Lallalit Srijandorn FXStreet

The USD/JPY pair extends the rally around 156.20 during the early Asian trading hours on Tuesday. The Japanese Yen loses ground against the US Dollar (USD) despite the hawkish signal from the Bank of Japan (BoJ) to cut purchases of Japanese government bonds on Monday and the downbeat Nonfarm Payrolls (NFP) for April last week.

Investors will take more cues from the key US economic data this week, including the Producer Price Index (PPI), Consumer Price Index (CPI), and Retail Sales. These reports will offer some hints as to whether inflation remains stubborn, is receding somewhat, or is even perhaps increasing. The PPI figure, a measure of inflation at the wholesale level, is due on Tuesday and is expected to rise 2.2% YoY in April. The core PPI, excluding energy and food costs, is projected to increase by 2.4% YoY in the same report period. Traders might use the PPI report to gauge the potential CPI outcome, and the hotter-than-expected data might continue to boost the US Dollar (USD) against the Japanese Yen (JPY).

On the JPY’s front, the Bank of Japan (BoJ) sent a hawkish signal on Monday by reducing the amount of Japanese government bonds (JGBs) it offered to buy in a regular purchase operation. This move is expected to put upward pressure on Japanese bond yields and possibly narrow the gap between Japan and the United States, which has weakened the JPY. However, the recent move was muted and had little effect on the Yen. On the Japanese docket, the nation’s GDP growth number for Q1 2024 will be released on Thursday. The stronger reading might lift the JPY and cap the upside of the USD/JPY pair in the near term.

USD/JPY

Overview
Today last price	156.23
Today Daily Change	0.01
Today Daily Change %	0.01
Today daily open	156.22

Trends
Daily SMA20	155.23
Daily SMA50	152.51
Daily SMA100	149.95
Daily SMA200	148.8

Levels
Previous Daily High	156.25
Previous Daily Low	155.51
Previous Weekly High	155.95
Previous Weekly Low	152.8
Previous Monthly High	160.32
Previous Monthly Low	150.81
Daily Fibonacci 38.2%	155.97
Daily Fibonacci 61.8%	155.79
Daily Pivot Point S1	155.73
Daily Pivot Point S2	155.25
Daily Pivot Point S3	154.99
Daily Pivot Point R1	156.48
Daily Pivot Point R2	156.74
Daily Pivot Point R3	157.22

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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