JPY - Dollar hits seven-week high against yen, yen remains weak

The dollar rose to a seven-week high against the yen on Thursday after data showed that the number of Americans filing for unemployment benefits fell last week but was still higher than expected, indicating that the job market remains strong despite a cooling. The dollar hit its highest level against the yen since April 29, reaching around 159. Yen markets have been in turmoil since the dovish Bank of Japan last week maintained its policy targets and signaled its intention to announce a reduction in bond purchases soon. However, market participants remain wary of signs that the Bank of Japan will continue to intervene to boost the yen. Japan's Finance Ministry Chief Financial Officer Masato Kanda said earlier on Thursday that there are no limits on the resources that can be used for foreign exchange intervention, Japan's Jiji News Agency reported.

As seen on the technical charts, the RSI and stochastic index are rising. In the early part of this month, the exchange rate found support at the 50-day moving average for three consecutive trading days. In the short term, it is expected that the U.S. dollar will have the opportunity to reach higher against the yen. The nearest resistance is estimated to be 159.20, and the key point is expected to be the 160. On April 29, the dollar against the yen hit 160.03; the next target will then be the 162 level. The lowest support is expected to be 157.90 and the 25-day moving average of 157. The most important support will continue to focus on the 50-day moving average, which is currently at 156.10.

Forecast range:
Resistance 159.20 – 160.00* – 162.00
Support 157.90 – 157.00 – 156.10

Friday: Japan May CPI (07:30)
Japan June PMI (08:30)

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