Should We Keep an Eye on Upside Potential for the USD/JPY Pair as It Enters the 130-yen Range?
02.06.2022
- U.S. Weekly Natural Gas Inventories
- Mester (U.S.): Remarks by the President of the Cleveland Federal Reserve Bank
On the previous day, U.S. currencies trended higher across the board as the yield on the 10-year U.S. Treasury note recovered to the 2.9% range. In particular, the USD/JPY pair rose from 128.56 to 130.20.During today’s Asian trading session, the pair has maintained its position above the key 130-yen level. From a technical perspective, USD/JPY continues to rise along the 20-period moving average on the hourly chart, and since the daily RSI has not yet reached 70, we will be watching closely to see if the upward trend continues.
Among European currencies, the pound is showing strength against the euro, and the EUR/GBP pair rose slightly from 0.850 to 0.854.On the 4-hour chart, the pair continues to rise, supported by the 75-period moving average (MA), and since the MAs remain in a “perfect order,” we will first focus on whether the rally will continue up to the recent high of 0.858.
Today’s schedule includes the Swiss Consumer Price Index at 15:30 European time, the Eurozone Producer Price Index at 18:00, and the U.S. Challenger Layoff Forecast at 20:30; followed by the U.S. ADP National Employment Report at 21:15 U.S. time, Canadian Housing Starts at 21:30,U.S. Initial Jobless Claims, U.S. Q1 Nonfarm Labor Productivity, at 23:00 the U.S. Manufacturing Orders Index,U.S. weekly natural gas inventories at 11:30 p.m., remarks by BOC Deputy Governor Bude at 11:45 p.m., U.S. weekly crude oil inventories at midnight, and remarks by U.S. Federal Reserve Bank of Cleveland President Mester at 2:00 a.m.We will be watching for further upside potential in USD/JPY, which has entered the 130-yen range.
Author: Keisuke Sakurai
