USD / JPY hits new weekly highs near 114.30 as dollar extends gains

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  • USD / JPY climbed for the third day in a row on Friday, focus at 114.50.
  • The US dollar DXY index remains near 16-month highs amid expectations of a rate hike from the Fed.
  • The hot US CPI makes the dollar rise. Will consumer sentiment do the same?

The USD/JPY keep the ground high near the nine-day highs of 114.31, as the bulls take a breather at the start of the European session on Friday. At the time of writing, the pair is trading at 114.21, gaining 0.12% on the day.

The renewed rise in the pair could be associated with the Unrelenting appetite from US dollar bulls, following warmer CPI consumer price index, which revived the odds of a Fed rate hike in the middle of next year.

Rising inflation also fuels reflation operations, which sentiment increases around US Treasury yields, collaborating with the current advance of the USD / JPY. Benchmark 10-year US yields are currently trading at 1.57%, up 0.70% on the day.

On the yen side, investors are digesting the latest draft of the Japanese economic stimulus package, with the JPY bulls unimpressed by the lack of details on the size of spending.

The pair is now awaiting preliminary US Michigan consumer sentiment data for new opportunities.

USD / JPY technical levels


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