JPY price, news and analysis:
- USDJPY remains in a strong upward trend as traders shun traditional safe havens like the Japanese Yen and Gold, preferring to buy the US Dollar.
- Levels above 114.00 now seem increasingly likely.
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USDJPY at six-month high
USDJPY has hit its highest level since January 8 and could make further gains as the pair remains on a strong upward trend. It is now only just below the 2018 high at 113.39 and could well top the 1.40 level before hitting the November 6, 2017 high at 114.74.
USDJPY Price Chart, Daily Timeframe (Year to Date)
USD strength in focus
The principal driver of USDJPY remains the strength of the US Dollar, which gained ground Tuesday after Jerome Powell, chairman of the Federal Reserve, confirmed the strength of the US economy and reiterated that interest rates are going higher, with two more 0.25% hikes now penciled in for 2018.
Retail trader sentiment data show more traders short than long USDJPY - implying further strength for the pair if you take a contrarian view of crowd sentiment - but overall the sentiment data are mixed. Still, the USD seems to have taken over from JPY and gold as the safest of havens.
Meanwhile, from a technical perspective, further gains to the 114.00 level and trendline resistance just above that remain likely before a move to the 114.74 level touched in November.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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