- USDJPY recovers more than 200 pips from Friday’s low.
- The dollar rises throughout the market at the start of the week.
- Without impact data on Monday, Tuesday comes growth in Japan and PPI in the US.
The USDJPY continues to climb apace and is trading around 140.75/80, at the high of the day, more than 200 pips from Friday’s low at 138.44. The advance is erasing much of Friday’s losses, but still a far cry from where it was before Thursday’s US inflation data.
Thursday’s Consumer Price Index figures sent the dollar into a slump as the yen performed well. The expectation of a Federal Reserve raising the interest rate at a less strong pace generated a drop in the yields of the Treasury bonds. On Monday yields rise again giving support to the dollar.
The economic calendar shows no impact data for Monday. Industrial production and growth figures will be published in Japan on Tuesday. That same day, in the US the Producer Price Index (IPP) will be known.
USDJPY’s ongoing bounce looks normal after 800 pips crash. In the area of 141.50 a significant resistance zone begins to emerge, followed by 143.70 and then the strong barrier of 145.00 appears. In the opposite direction, at 139.00/20 relevant support appearsand if there is a consolidation below, it would leave the way to test the recent low at 138.45.
Technical levels
Source: Fx Street
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