Usdjpy Crosses Support After Ppi

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Usdjpy Crosses Support After Ppi

Usd/Jpy Crosses 156.00

Bullish momentum continues to propel the USD/JPY higher after the release of the US PPI. The recent inflation data has shown an increase in the PPI, which isn't exactly good news for the Federal Reserve and the advocates of early rate cuts.

The recent PPI has shown that inflation is likely making an unexpected comeback, which means the higher rates won't go anywhere soon. That was enough of a reason for the USD/JPY to turn higher as it traded near the 156.48 level.

Usd/Jpy Remains Bullish For Sixth Trading Day

The technical outlook of the USD/JPY shows that the pair is in green for the sixth day in a row. Such consistent bullish pressure has also raised the fear of yet another intervention from the Japanese officials.

The Ichimoku indicator also shows that the USD/JPY is trading above the clouds, which is a sign of bullish momentum. Similarly, the RSI is also printing in the bullish territory, which means there's a good chance that the USD/JPY will retest the yearly highs.

If the buyers send the USD/JPY towards 157.00, then the next possible target for the dollar bulls will be 157.98 (high from 1st May). Once this resistance is turned into support, the next level for the USD/JPY will be 158.44 and then 160.22.

Another scenario is the sellers taking charge of the USD/JPY, which could send the pair towards the 156.00 support. In that case, the pair could trend lower and target the next levels at 155.90, 155.10, and 155.00.

However, the USD/JPY pair will not likely take any extreme side for now as the US CPI is still yet to be released. If April's CPI turns out to be similar to the PPI, it will send the USD/JPY higher towards the 157.00 and then the 158.00 levels.

Overall, the recent inflation readings from the USA aren't painting a good picture, as the inflation remains above the Fed's 2.0% target.

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