30 Jul 2015
USD/JPY remains above 124.00 after finding resistance at 124.50
FXStreet (Córdoba) - USD/JPY peaked after the release of US economic data at 124.57, the strongest level since early June. Afterwards pulled back but remained above 124.00. During the last hour greenback gained momentum and pushed the pair toward daily highs.
The US dollar is rising of the third day in a row against the Japanese yen and it could post the highest daily close in a month supported by economic data form the US and expectations of a September rate hike from the Federal Reserve. The yen is among the worst performer in the market on Thursday while the US dollar is the stronger.
USD/JPY outlook
According to analysts from The Bank of Tokyo Mitsubishi UFJ the FOMC statement gave little away in regard to an explicit hint of a rate increase in September but there was enough optimism expressed in the current state of the economy to leave open the prospect of a September rate increase. “That now is providing some upside for USD/JPY, especially in the wake of the US real GDP data for Q2 that confirmed a rebound and put growth back at levels consistent with a further drop in the unemployment rate.”
But they explained that the upside could be limited “with falling commodity prices, China uncertainties and general EM FX weakness likely acting to help support the yen”.
The US dollar is rising of the third day in a row against the Japanese yen and it could post the highest daily close in a month supported by economic data form the US and expectations of a September rate hike from the Federal Reserve. The yen is among the worst performer in the market on Thursday while the US dollar is the stronger.
USD/JPY outlook
According to analysts from The Bank of Tokyo Mitsubishi UFJ the FOMC statement gave little away in regard to an explicit hint of a rate increase in September but there was enough optimism expressed in the current state of the economy to leave open the prospect of a September rate increase. “That now is providing some upside for USD/JPY, especially in the wake of the US real GDP data for Q2 that confirmed a rebound and put growth back at levels consistent with a further drop in the unemployment rate.”
But they explained that the upside could be limited “with falling commodity prices, China uncertainties and general EM FX weakness likely acting to help support the yen”.