Greenback soared as inflation remains high.
“Inflation continues to hover near 40-years high as supply chain remains tight.”
Investors poured into the greenback, soaring to four-week high last Friday as latest data from US shows accelerated consumer prices. According to BLS, Core Consumer Price Index (CPI) was up 0.6% last month, slightly higher than forecast of 0.5%. The data sparked speculation among investors that Federal Reserve may maintain their rate hike efforts till September to curb high inflationary pressure.
Quick recap on USDJPY
The pair accelerated its uptrend as it managed to close above the threshold of 130.92 prior.
USDJPY Weekly Technical Analysis
From weekly perspective, MACD illustrate significant pickup in upward momentum, signifying continuation of its current upward bias.
USDJPY Daily Technical Analysis
On the daily perspective, the pair is currently testing near the threshold of 135.12. A close above this level is required to confirm further uptrend ahead.
ORDER: BUY STOP
STOP LOSS: 133.20
Target 1: 138.20
Target 2: 140.00
ZFX Analyst’s Comment
In mid to long-term perspective, the pair has an ample amount of room for further extension of its upside bias. Coupled with possible hawkishness from Fed, we may see significant shift in market structure in the coming weeks.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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