- USD / JPY extends its bounce from 105.15 to 105.40.
- Brilliant US consumer data fuels the recovery of the US dollar.
- The dollar could stay between 105.00 and 106.00 for some time – UOB
The dollar’s rebound from the session lows at 105.15 has extended during the US session on Friday, and the pair extends to the mid-range of 105.00, supported by positive data from the US. has made up lost ground after a weak opening session.
Dollar backed by upbeat consumer data
The USD traded lower against its main rivals in early trading on Friday, with major stock indices in the green, as the market ignored the risk-off sentiment seen in previous days. The pair, however, changed direction following better than expected US retail consumption data, easing concerns about the strength of the US economy.
Despite the recent rally, the US dollar has been trapped between 105.00 and 106.00 against the yen for the third week in a row and is on track for a 0.3% loss this week. The Japanese yen has appreciated across the board, fueled by depressing market sentiment amid disappointment regarding the fiscal stimulus deal in the US and tightening of COVID-19 restrictions in Europe.
USD / JPY could stay between 105.00 and 106.00 for some time – UOB
From a longer-term perspective, the UOB currency analysis team sees the mixed pair, likely to remain between 105.00 and 106.00 for the next few weeks: “While the bias is tilting to the downside, the USD has to close down. below 104.70 before a sustained drop can be expected. For now, the outlook for such a move is not high, but it would rise rapidly as long as the USD does not move above 105.70 in these few days. ”
Credits: Forex Street