Yen to USD Still Bullish After Soft Tokyo Inflation and Retail Sales

The early part of the week witnessed a bullish surge in the US dollar, with the Yen to USD rate resuming the upside after the stagnation last week. This was triggered by a sharp rise in Treasury yields following a Treasury auction. This upward movement marked a notable reversal in the performance of the US dollar, indicating a recovery from its previous months of decline.

As a result, the dollar made significant gains against various currencies. One particular currency pair, USD/JPY , experienced a robust recovery, climbing above the 157 level before the subsequent decline in the latter half of the week. This upward movement suggests increased strength in the US dollar relative to the Japanese yen, reflecting shifting market dynamics and sentiment towards the two currencies.

USD/JPY Chart H4 – The Trend Remains Bullish

The US dollar demonstrated significant positive momentum against the Japanese yen, pushing the USD/JPY pair to a one-month high. The pair’s climb up to the 157.70 level suggests that this might serve as a critical resistance point. The subsequent 140-pip decline from this peak indicates a possible temporary retracement, highlighting the importance of this resistance level.

Given this context, further gains in the USD/JPY pair may be contingent upon broader market risk appetite. Factors such as today’s CPI inflation and retail sales, will likely influence market sentiment and drive future movements in the pair. We made the decision to purchase USD/JPY amid yesterday’s decline.

Tokyo Core CPI Inflation Report for April

USD/JPY Live Chart

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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