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USD/JPY surpasses 133.00 for the first time in three days, boosted by US Treasury yields
The Japanese Yen is among the poorest performing currencies as a result of rising US yields. Dollar displays mixed results after US data. USD/JPY increased on Friday but decreased for the week.
The USD/JPY surpassed 132.80 and rose to 133.15, the highest level since Tuesday. Following various economic reports from the United States, US Treasury yields increased, which weighed on the Japanese Yen.
The most important news from the United States was the Core Personal Consumption Expenditure Price Index, which increased 0.2% in November, in line with predictions, and 4.7% from a year ago, a decrease from October's 5%. The Federal Reserve regularly watches the inflation indicators.
Orders for durable goods decreased 2.6% more than anticipated. In December, the Michigan Consumer Sentiment Index reached 59.7, exceeding the preliminary estimate of 59.1. November New Home Sales shocked with a 5.8% increase to 640K, exceeding the market forecast of 600K.
Following the release of all economic statistics, Wall Street stock prices are falling, exactly as they did on Thursday when favorable data prompted a selloff. The difference on Friday is that bond yields are reacting more sharply, raising the USD/JPY exchange rate.
The pair is hanging below 133,00 with an intraday positive tilt. Above the daily high, the next area of resistance might be around 133.50. The major support on the downside is the 132.50/60 band, which is the intersection of a horizontal level and an uptrend line from the weekly low. A break lower would shift the intraday bias from positive to neutral or bearish.
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