USD/JPY: growth against the backdrop of persisting geopolitical
Current trend
The Japanese currency is confidently traded against the main global competitors. However, even strong positions in the market do not allow it to strengthen against the US dollar, which is at its highs. Now, the USD/JPY pair is correcting around 115.52.
Positive macroeconomic statistics from Japan support the asset quotes. Thus, Tokyo Core CPI, which is used to determine inflation, rose to 0.5% for February after a long stay at the level of 0.2%. Foreign bond purchases resumed last week, totaling 40.7B yen after an outflow of 1.896T yen. As for the main indicators, only the January volume of industrial production was disappointing, which fell by 1.3% against the forecasted decline of 0.7%. At the same time, the volume of retail sales increased by 1.6%, which exceeds the growth of December by 1.2%.
In the meantime, the USD Index has again hit a recent high of 97.350 and is poised to break it as investors choose to hedge against the dollar. Core Durable Goods Orders for January rose by 0.7%, which exceeded the 0.5% growth forecast by analysts. However, one of the key consumer sentiment indexes, calculated by the University of Michigan for February, fell to 62.8 points from 67.2 points for the previous period.
Support and resistance
The asset is corrected within the rising global channel, approaching the resistance line. Technical indicators keep a buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms upward bars.
Resistance levels: 116.05, 117.00.
Support levels: 114.95, 113.60.
The Japanese currency is confidently traded against the main global competitors. However, even strong positions in the market do not allow it to strengthen against the US dollar, which is at its highs. Now, the USD/JPY pair is correcting around 115.52.
Positive macroeconomic statistics from Japan support the asset quotes. Thus, Tokyo Core CPI, which is used to determine inflation, rose to 0.5% for February after a long stay at the level of 0.2%. Foreign bond purchases resumed last week, totaling 40.7B yen after an outflow of 1.896T yen. As for the main indicators, only the January volume of industrial production was disappointing, which fell by 1.3% against the forecasted decline of 0.7%. At the same time, the volume of retail sales increased by 1.6%, which exceeds the growth of December by 1.2%.
In the meantime, the USD Index has again hit a recent high of 97.350 and is poised to break it as investors choose to hedge against the dollar. Core Durable Goods Orders for January rose by 0.7%, which exceeded the 0.5% growth forecast by analysts. However, one of the key consumer sentiment indexes, calculated by the University of Michigan for February, fell to 62.8 points from 67.2 points for the previous period.
Support and resistance
The asset is corrected within the rising global channel, approaching the resistance line. Technical indicators keep a buy signal: fast EMAs on the Alligator indicator are above the signal line, and the AO oscillator histogram forms upward bars.
Resistance levels: 116.05, 117.00.
Support levels: 114.95, 113.60.
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