- The yen, among the best performers on Thursday, regained ground it recently lost.
- USD / JPY down despite rising US bond yields.
- The rejection above 114.00 suggests some exhaustion to the upside.
The USD/JPY it is retreating on Thursday after hitting the highest level in years. It recently fell to 113.63, the lowest level in a week. The move lower took place even as US yields hit new monthly highs and amid a stronger dollar. The yen is among the best performers, with US stocks trading mixed.
US economic data showed that initial jobless claims fell more than expected to the lowest level since March 2020. On the negative front, the Philadelphia Fed fell from 30.7 to 23.8, disappointing expectations. Existing home sales recovered more than expected. The dollar did not benefit from the numbers.
Rejected above 114.00
If USD / JPY fails to rise above 114.00 again and records a weekly close below, it would suggest some consolidation or even an extension of the current correction before the next move. After climbing for four consecutive weeks and hitting a long-term barrier around 114.00, the rally could need a pause.
Initial support is around 113.60 followed by 113.20 and then 112.10. A weekly close well above 114.00 should clear the way for more gains.