USD/JPY today cleared the last major hurdle standing in the way of a yet-another retest of 150.00.
It rose above the 61.8% retracement level from November-December slump, cruising through and adding another 100 pips beyond it. It’s up 130 pips to 148.50.
USDJPY daily
The pair has soared higher from 144.50 at the start of the week, gaining 400 pips in a one-way move. From the start of the year, it’s now up nearly 800 pips as the December slump unwinds.
Two things have driven it:
1) The BOJ has pushed back on rate hiking expectations
The earthquake in Japan was the first even that sparked buy as it was thought to delay any possible January move. That was followed by disappointing Japanese CPI numbers and some push bank from the BOJ on possible hikes.
2) The US dollar has benefited from strong data and changing Fed rate hike expectations. Today’s strong retail sales report underscores an economy that’s no in desperate need of cuts and that’s contributed to a broad, ongoing bid in the dollar to start the year.
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- Source: https://www.forexlive.com/news/usdjpy-hits-14850-as-the-non-stop-rally-continues-20240117/
