Home / Market Update / Forex Market / USD/JPY retreats after hitting a fresh 24-year high

USD/JPY retreats after hitting a fresh 24-year high

The USD/JPY pair jumped after the release of the US June CPI to 137.86, reaching a fresh 24-year high. After the beginning of the US trading session pulled back to 137.10. As of writing, it is moving back to the 137.50 area.

Inflation keeps rising, so does the US dollar. Inflation in June rose in the US to 9.1% (y/y), the highest since 1981. The number was above the 8.8% of market consensus. Immediately after the report the dollar surged to fresh highs across the board and then pulled back.

The CPI reading keeps the Fed on its way of aggressive interest rate hikes. It will take at least several consecutive monthly inflation readings of slowing price growth for the Federal Reserve to believe that it has inflation in check.

The USD/JPY initial support is located at 137.00/10 followed by 136.45 (July 12 low). On the upside, 137.60 is becoming a critical resistance and a consolidation above should open the doors to a new record and 138.00.

Check Also

Bitcoin Faces Continued Pressure Amid Fed’s Hawkish Stance

Bitcoin traded marginally lower on Monday, reflecting ongoing caution among investors as macroeconomic uncertainties and …