USD/JPY is at the highs of the week, up 37 pips today to 150.65.
USDJPY daily
Eyes are on 150.88, which was the Feb 12 high. A break through that puts 152.00 squarely on the table and a challenge of the November 2022 and October 2021 double top.
This pair is getting it from both sides. Fed cut pricing for this year is down to just 80 bps from upwards of 160 bps earlier this year. Consistently strong economic data has the market thinking the Fed will remain patient before lowering rates.
On the JPY side, a suddenly struggling economy has some questioning whether the Bank of Japan will hike at all, or if any hike will be a one-off rather than the beginning of a cycle.
Today’s economic data was a mixed picture with US initial jobless claims lower than anticipated but the S&P Global services PMI on the light side. Going forward, the market will closely track upcoming US eocnomic data releases. It’s been quiet this week but next week features durable goods orders and the PCE report.
