FXStreet (Guatemala) – USD/JPY is currently trading at 124.72 with a high of 124.78 and a low of 123.84.
USD/JPY’s is a convincing bid again at the start of the week, extending last week’s 123.40 / 124/40 range to aforementioned highs, basing on the 124 handle. Of late there had been some downside with Japan’s CPI data that came overall better than expected overnight, although with their target of 2%, and we are back to US fundamentals with US Payrolls and PMIs coming up this week. However, the moves to the upside are dubious having moved on little substance except momentum and in light of the divergence between Abenomics and the Fed’s likelihood of hiking interest rates.
Technically, Karen Jones, chief analyst at Commerzbank explained that they would allow for a small retracement of this move. “The Elliott wave count on the intraday chart is suggesting a retracement to 123.00-122.15 ahead of recovery.”
(Market News Provided by FXstreet)