USD/JPY catches fresh bids, jumps to test 110 handle

The USD/JPY pair finally broke its overnight consolidation phase between 109.50-85 levels to the upside over the last hour, in a bid to reclaim 110 handle, before meeting fresh supply at the last.

USD/JPY holds above 10-DMA

The yen suddenly gave into the G7 headlines flowing into the markets and turned negative versus its American counterpart last hours after the G7 leaders commented on market determined fx rates. While an extension of the gains in the Japanese stocks also led a renewed bout of buying interest in the dollar-yen pair. At the time of writing, USD/JPY retreats from 110 to trade at 109.90, still up 0.12% on the day, while the Nikkei moved-off highs to trade +0.46% around 16,850 levels.

Moreover, the major staged a comeback after yesterday’s slide also on the back of poor Japanese CPI numbers that just got bad to worse this month. National CPI y/y for April came in at -0.3% y/y vs -0.4% expected and -0.1% last, while Tokyo CPI y/y for May came at -0.5% y/y vs -0.5% expected and -0.4% seen in April.

Next in focus for the major remains the US GDP numbers, especially after we had weaker durable goods orders release a …read more

Source:: FX Street