USD/JPY: Strong Dollar tests key resistance – ING

FXStreet Insights Team FXStreet

ING’s Chris Turner reports improving Japanese manufacturing sentiment, supported by semiconductor and data centre demand, strong corporate profits and firm wages. This backdrop could reinforce Bank of Japan (BoJ) confidence that inflation is stable near 2%.

Stronger Japan data versus Dollar momentum

"All of the above can feed into the Bank of Japan's view that inflation is now stable at 2.00% and its accommodative monetary policy can be reined in."

"The broadly strong dollar means that USD/JPY could easily push through resistance at 159, but we increasingly think investors will be looking to acquire cheap yen should USD/JPY push above 160 again."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

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FXStreet Insights Team

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