Should we keep an eye on the upside potential of the USD/JPY pair, which has returned to the 156-yen range?
21.05.2024
- Germany: Producer Price Index
- Remarks by Federal Reserve Governor Waller
In the previous day’s U.S. currency trading, the dollar strengthened during U.S. trading hours after Atlanta Fed President Bostic stated, “It will take some time before we can be confident that we are on track to return to our 2% inflation target,” signaling a cautious stance regarding the timing of interest rate cuts. The USD/JPY pair rose from 155.488 to 156.302, easily breaking through the key 155-yen level.
Among European currencies, the pound emerged as the strongest. The GBP/JPY pair rose from 197.364 to 198.636. On the hourly chart, the price climbed along the +2σ line of the Bollinger Bands. On the 4-hour chart, the price is rising while finding support at the 10-period moving average, and a similar price movement is observed on the daily chart. I will be closely monitoring whether the pair continues to climb toward this year’s high in the mid-200 yen range.
Today’s economic indicators include the Australian Westpac Consumer Confidence Index at 9:30, the release of the RBA minutes at 10:30, the German Producer Price Index at 15:00, the Eurozone Current Account at 17:00, remarks by ECB President Lagarde, remarks by U.S. Treasury Secretary Yellen, Eurozone Construction Output and the Eurozone Trade Balance at 18:00,at 9:00 PM, the Hungarian Central Bank’s policy rate; at 9:30 PM, the Canadian Consumer Price Index; at 10:00 PM, remarks by U.S. Federal Reserve Governor Waller; at 12:45 AM, remarks by U.S. Federal Reserve Vice Chair Barr; and at 2:00 AM, remarks by Bank of England Governor Bailey. We will closely monitor the upside potential of USD/JPY, which has once again moved into the 156 yen range.
Author: Keisuke Sakurai
