USD/JPY rises to 112.50 after upbeat US data, ahead of Fed’s minutes

  • US Dollar rises further after economic data and ahead of FOMC minutes.
  • USD/JPY recovers after finding support above 112.00.

The USD/JPY pair is rising on Wednesday, before the FOMC minutes. Recently it reached a fresh daily high at 112.50 and then pulled back. As of writing, trades at 112.35, gaining for the first time after falling during the previous three days. 

The greenback gained momentum after the release of the ISM Manufacturing Index. It came in at 59.7 in December, surpassing expectations of 58.1. The ISM Price Paid index rose to 69.0 against the 65.0 estimate by analysts. “Another huge ISM reading shows the manufacturing sector is in great shape and will make a major positive contribution to economic growth this year”, said analysts from ING. 

Now traders await the release of the FOMC minutes (19:00 GMT) that are likely to influence on the pair and also on US yields. USD/JPY could receive a boost to extend the recovery while on the downside if the US dollar cames under pressure a test of 112.00 is possible. 

Technical levels 

To the upside, resistance levels might be located at 112.50 (Jan 3 high), 112.65 (Dec 28 low) and 112.80 (Jan 2 high). On the opposite direction, support might be located at 112.15 (Jan 3 low), 112.00/05 (Dec 5 & Jan 2 low) and 111.70 (Nov 27 high). 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.