- The dollar consolidates gains after reaching 7-month highs above 112.00.
- The pair retreats in a rocking trading session amid mixed US data.
- USD / JPY tries to contain the decline in the 111.35 / 110.90 region – Commerzbank.
The dollar retreats to the 111.50 zone in Thursday’s US trading session, retreating from 7-month highs just above 112.00. The pair USD/JPY lost ground, having rallied for six consecutive days, amid mixed US data and month-end closing moves.
US dollar consolidates gains at multi-month highs
The dollar appears to be consolidating gains after rising to multi-month highs against its main rivals. However, in the bigger picture, USD / JPY remains biased to the upside, driven by the increasing spread of the yield curve between the US and Japan, and the Federal Reserve is expected to begin to reduce its program. of bond purchases before the end of the year.
On the macroeconomic front, the US calendar has shown mixed readings. Weekly jobless claims have posted their third consecutive increase, with 362,000 new claims in the week of September 25, which could have affected the strength of the US dollar.
On the positive side, the US Gross Domestic Product expanded at a 6.7% pace in the second quarter, modestly above the previously estimated 6.6% increase.
USD / JPY: expected to dip lower at 111.35 / 110.90 support – Commerzbank
The current USD reversal is likely to be short-lived, according to Karen Jones, FICC Technical Analysis Research Team Leader at Commerzbank, who sees that the pair is skewed towards 114.55: “USD / JPY has eroded the July high. at 111.66 and well positioned to challenge the more important 112.23 / 50 zone, which represents highs since 2019. This may take a couple of tries to clear, but up here will introduce reach to 114.55 the October 2018 high. “
Technical levels
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