Inflation runs wild, USD/JPY skyrocketed.
“US inflation soared 9.1%, its highest in four decades.”
Greenback extended its bullish thrust, charting at 24-years high against the Japanese Yen. Market participants pours into the US dollar following heightened bets for a faster pace of rate hike from Federal Reserve. Overall sentiments were stoked after recent data shows that US headline and Core CPI Inflation exceed expectation, coming in at 9.1% annualized rate for the month of June. Thereafter, market is currently pricing in upon Fed to raise interest rates as high as 100 basis points during its meeting later this month, rather than previous expectation of 75 basis points.
Quick recap on USDJPY
USDJPY extended its current uptrend following prior rebound from 126.89 and several closure above key resistance level.
USDJPY Weekly Technical Analysis
USDJPY propels higher, steering towards the direction of 140.00, current psychological hurdle that is anticipated by investors.
USDJPY Daily Technical Analysis
From daily perspective, MACD shows the formation of bullish momentum, indicating possible extension in uptrend. However, the pair requires a closure above 140.00 to obtain further confirmation.
ORDER: BUY STOP
STOP LOSS: 139.70
Target 1: 142.10
Target 2: 143.10
ZFX Analyst’s Comment
Recent price action warrants for an extension in bull-run in the long term. Nonetheless, we should take note that a significant pullback may occur if the psychological level is failed to be conquered.
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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