USD/JPY accelerates past 111.65 to hit levels above 112.00
|- The dollar accelerates above 111.65 and reaches levels past 112.00.
- The USD has appreciated about 2.50% over the last six days.
- Above 112.23/50, the USD/JPY might reach 114.55 – Commerzbank.
The US dollar accelerated its uptrend against the Japanese yen during Wednesday’s US session, breaching resistance at the 111.65 area to reach levels past 112.00 for the first time in the last 19 months.
The USD appreciates for the sixth consecutive day
The USD/JPY has been rallying steadily during the last six days, to appreciate about 2.5% so far. The slightly lower US yields and the improved risk appetite observed on Wednesday, with the major US and European indexes posting a solid rebound, have not been able to stop the USD from reaching multi-month highs against its main peers.
In absence of first-tier macroeconomic releases, the US Dollar Index has continued marching higher, unfaced by the dispute about the debt limit in the US Congress, and has reached year-to-date highs beyond 94.00.
USD/JPY: Above 112.23/50, the pair could reach 114.55
Karen Jones, head FX analyst at Commerzbank, sees the greenback with potential to climb higher: “The USD/JPY pair may take a couple of attempts to clear the 112.23/50 resistance zone, but above here will introduce scope to 114.55 the October 2018 high.”
Technical levels to watch
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