The USD/JPY pair trades flat around 154.10 during the early Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of the Federal Reserve and the BoJ interest rate decision later this week. On Tuesday, the US November Retail Sales will be published.
The 4-hour USD/JPY chart shows the pair correcting higher, with bulls capped so far at the 50% Fibonacci retracement level of November’s sell-off.The immediate bias remains positive, with price action standing above the 100-period SMA, which meets the price right below 152.00. the key support for the upside trend is at 150.90. Resistances are at 152.85 and 153.60.
The US Dollar snaps a three-day positive trend on Thursday against the Japanese Yen. The pair is trading with moderate losses with the market focusing on US Producer Prices and Jobless Claims figures, due later today.From a wider perspective, however, the pair maintains its immediate bullish trend. The dovish comments from BoJ policymakers suggesting that there is no rush to hike interest rates cast doubts on the outcome of next week’s monetary policy decision and will likely keep the Yen on its back foot.
A dovish BoJ and strong US data support the Dollar
The higher US Treasury yields, with the 10-year yield hitting 4.3% - from 4.12% last week is another source of support for the Greenback. US inflation accelerated in November at its fastest pace in seven months, which is forcing investors to dial back hopes of monetary easing for 2025.The focus today is on November’s PPI and last week’s Jobless Claims figures. Price pressures are expected to have also increased at factory gates with unemployment claims declining. This would endorse the view of a resilient US economy, increasing support for the Greenback.
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