An event to look out for today:
15:30 GMT+3. USD – Change in personal income/expenditures
USDJPY:
The Japanese Yen (JPY) remains stable following the release of Consumer Price Index (CPI) data from the Statistics Bureau of Japan on Friday. The CPI rose to 2.2% year-on-year in May from the previous 26-month low of 1.8%.
The Bank of Japan (BoJ) maintains a deeply entrenched monetary policy stance. If Japan’s nationwide inflation falls, it will prevent the central bank from raising interest rates. The large rate differential between Japan and other countries continues to weigh on the Japanese Yen, supporting the USD/JPY pair.
The US Dollar (USD) is recovering ahead of Friday’s release of the Core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge. A decline in U.S. Treasury yields could limit USD gains.
The US Dollar Index (DXY), which measures the value of the US dollar (DXY) against six other major currencies, is trading higher near 104.80, and yields on 2-year and 10-year US Treasuries were at 4.92% and 4.54% at press time, respectively.
Trading recommendation: Trade mainly with buy orders at the price level of 157.00. We consider sell orders at the price level of 156.30.
Origin: FreshForex
