USD/JPY: In the bullish zone, testing 124.00

FXStreet (Guatemala) – USD/JPY is currently trading at 124.03 with a high of 124.19 and a low of 123.59.

USD/JPY’s downside is being reversed with a rally from the 123.80’s in the US closing session today to leave the major in a positive space in the new upside of the 123.40 / 124/40 range formed this week.

There had been some downside with Japan’s CPI data that came overall better than expected overnight, although with their target of 2%, we are still a long way from there and hence the bid tone over the yen wasn’t lasting very long and we are back to US fundamentals. Next week we get prepared for US Payrolls and PMIs which will both count towards whether we will see a hike in, say, September this year or not.

Technically, analyst at UOB Group explained that despite severely overbought conditions, it is still too early to expect a top. “The current movement is likely a short-term consolidation phase that is expected to lead to an eventual move to the next target at 125.00. Stop-loss has moved higher to 122.75.”

USD/JPY is currently trading at 124.03 with a high of 124.19 and a low of 123.59.

(Market News Provided by FXstreet)