USD/JPY rose above Asian session highs and printed a fresh daily high at 112.37. The pair gained momentum and turned positive for the day after reaching 3-day lows at 111.72, earlier today.
Data supports USD
Today’s economic data from the US offered some support to the US dollar. Personal income rose 0.4% (above the 0.3% expected) while spending climbed 0.1%. Later the Chicago PMI index soared surprisingly to 65.7 (market consensus was 58.0) while the Michigan Consumer Sentiment rose from 94.5 to 95.1.
Bond yields rose toward daily highs after the economic reports. Equity prices in Wall Street are up marginally. The US dollar index rises 0.17%, the first gain in a week.
JPY, the worst
Despite the sharp slide of the greenback yesterday, the yen remains the worst performer of the week. It is being affected, by the change in the tone of many central banks across the globe, now more toward starting a normalization policy. The new stance pushed bond yields to the upside and weakened the demand for the yen.
Despite the sharp decline if the US dollar index, USD/JPY is up for the week. The pair, currently trading at 112.30/35, is up a hundred pips from the level it had seven days ago.
The rally was capped so far below the 113.00 from where it made a bearish correction, limited by 111.70. The trend and intraday momentum still points to the upside, but the rally that started back on June 15, appears to be losing strength.