Home›Forex›Major Pairs›USD/JPY rebounds toward 159.5 as dollar regains moment…

USD/JPY rebounds toward 159.5 as dollar regains momentum

The yen move appears driven by a broader pullback in rate-hike expectations after US CPI, followed by a reversal as the US Dollar Index firms again.

Reported · Written up by our desk · Major Pairs

USD/JPY is back around the mid-159.00s and testing the day’s highs after rebounding sharply from a low near 158.60, with the latest move linked to broader US dollar dynamics rather than anything specific to the yen, FXStreet said.

FXStreet noted that Wednesday’s US Consumer Price Index (CPI) came in line with forecasts and initially pressured the dollar by denting rate-hike bets, but that reaction reversed as the US Dollar Index (DXY) turned firmer in the session.

Looking ahead, FXStreet said Thursday’s US Producer Price Index (PPI) is due, with expectations that core wholesale prices will slow sharply on an annual basis, and it added that a softer print could cap the dollar’s rebound while a hotter number would support it.

On the technical side, the article cited that USD/JPY last traded around 159.47, holding above the 20-period SMA near 158.90, with resistance seen around 159.54 and a potential higher cap near the 100-period SMA at 160.65.

Latest closeUSD/JPY 159.42 ▲0.2%|Dollar index 99.99 ▲0.2%

More like this

Sources