15 Jul 2015
USD/JPY hits 2-week highs as Yellen reiterates probable rate path
FXStreet (Córdoba) - USD/JPY jumped from 123.50 to 123.83, reaching the strongest level since June 26 boosted by Janet Yellen testimony, presenting the Semiannual Monetary Policy Report to the Congress. The pair is holding near the highs as the US dollar remains strong in the market.
Between Yellen and data
The Japanese currency fell across the board with Yellen’s words and also with the release of US economic data. According to the Chairwoman, the central bank is likely to raise rates at some point this year if the economy remains on its current path. Yellen offered an optimistic view on the economy and noted that the Greek crisis and China’s problems pose some risk to the US.
Regarding economic data, the PPI rose in June 0.4%, above the 0.3% expected while the core rate also rose above consensus, 0.3% vs 0.1%. The Empire Manufacturing index was also released and it showed an improvement in the New York area as it rose from -1.98 to 3.86. Traders now await industrial production data and then, Yellen will answers questions from senators.
USD/JPY attempting to break above 123.70
The recent rally of the pair brought the price above an important resistance located at 123.70 (July 2, 14 highs). A consolidation above the mentioned level could give further momentum to the US dollar. Above 124.00, the next resistance is seen around the 124.40 – 124.50 area.
Between Yellen and data
The Japanese currency fell across the board with Yellen’s words and also with the release of US economic data. According to the Chairwoman, the central bank is likely to raise rates at some point this year if the economy remains on its current path. Yellen offered an optimistic view on the economy and noted that the Greek crisis and China’s problems pose some risk to the US.
Regarding economic data, the PPI rose in June 0.4%, above the 0.3% expected while the core rate also rose above consensus, 0.3% vs 0.1%. The Empire Manufacturing index was also released and it showed an improvement in the New York area as it rose from -1.98 to 3.86. Traders now await industrial production data and then, Yellen will answers questions from senators.
USD/JPY attempting to break above 123.70
The recent rally of the pair brought the price above an important resistance located at 123.70 (July 2, 14 highs). A consolidation above the mentioned level could give further momentum to the US dollar. Above 124.00, the next resistance is seen around the 124.40 – 124.50 area.