The recent advance in USD/JPY indicates an improvement in risk appetite as it mirrors the rise in US Treasury yields, and the exchange rate may continue to bounce along the moving average amid growing bets for another Federal Reserve rate hike.
USD/JPY bounces along the 50-Day SMA (133.24) after clearing the opening range for April, and the update to the US Consumer Price Index (CPI) may prop up the exchange rate as the report is anticipated to show sticky inflation.
The Japanese Yen rebounded off a key pivot zone at yearly uptrend support last week with a breakout of a multi-month downtrend in USD/JPY fueling a rally of more than 8.2% off the January low. Price is poised to mark an outside-day reversal off Fibonacci resistance today and while the move does threaten a deeper correction near-term, the broader technical outlook remains constructive while above December lows. These are the updated targets and invalidation levels that matter on the USD/JPY short-term technical charts.
US Dollar is attempting to snap a four-week losing streak vs the Japanese Yen but the reprieve may be short-lived. Levels that matter on the USD/JPY weekly technical chart.
US Dollar’s assault on the Japanese Yen has been halted with USD/JPY threatening a larger correction within the uptrend. Levels that matter on the weekly technical chart.