USDJPY will continue to rise beyond 143.50.
After encountering tenuous barriers around 143.50 in the early London session, the USDJPY pair has undergone a slight pullback. Since the market attitude is mostly negative. The upside bias for the USDJPY pair has not diminished. Which has increased the appeal of the US Dollar Index (DXY).
Investors are concerned that fears of weak global growth have increased as a result of the extraordinarily restrictive monetary policy adopted by central banks around the world, which has caused large losses in S&P500 futures in Asia. The market is often in a calm negative because the Federal Reserve (Fed) will increase rates more to combat inflation that is still present.
The US Dollar Index reached a new day’s high of 102.70 amidst the extreme turbulence in the world’s financial markets. According to the CME Fed watch tool, there is a 77% chance that the Fed will adopt a hawkish interest rate stance at its July meeting. Even if tight labor market circumstances are releasing heat, the chances of a hawkish policy in July remain good.
Initial claims for unemployment benefits for the week ending June 16 were slightly higher, the US Department of Labor reported on Thursday. For the fourth straight time, initial claims for unemployment benefits were higher than expected. The claims came in at 264K, which is somewhat more than their previous release and comparable. than the 260K forecast.
Inflationary pressures on the Japanese Yen have unpredictably decreased despite persistent monetary support from the Bank of Japan (BoJ). While the street was anticipating a further increase to 4.1%, headline inflation has slowed to 3.2%. Additionally, it stayed below the previous release of 3.5%. Core inflation, which does not include volatile food and oil prices, came in at 4.3%, slightly below predictions of 4.4% but still higher than the previous announcement of 4.1%.
