Dollar/yen is making an impressive comeback after crashing the through the 100 level yesterday and falling also below 99.
Update 6:25 GMT: USD/JPY pierced through 100 and is already above 100.20.
Together with the Japanese Nikkei index, USD/JPY is now on the rise. It already reached 99.94 and seems a bit hesitant to add a digit.
At the time of writing, the Nikkei 225 stands at around 13,528 points, a rise of about 2%. Apart from the stock market correlation, a good figure in Japan also helps the yen weaken. Update: Nikkei closes +2.05%.
Japan posted a rise in the average cash earnings indicator. While this is usually not a very important figure, the rise of 0.3% after a drop of 0.9% last time shows that there might be change in the direction of inflation. More earning usually turn into higher prices.
The most important US figure for the day is trade balance. More important is released tomorrow: ADP NFP and ISM Non-Manufacturing PMI.
Above 100, the next level of resistance is 100.66, followed by 101.44. Below, 99.40 provides some support. For more, see the USD/JPY forecast.
Live chart of USD/JPY:
[do action=”tradingviews” pair=”USDJPY” interval=”60″/]
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