FxWirePro: USD/JPY remains bullish as rally continues
USD/JPY rose on Thursday as the greenback surged after strong U.S. economic data and comments by U.S. Federal Reserve Chair Janet Yellen further bolstered the case for interest rate hike next month. U.S. consumer prices …
USD/JPY rose on Thursday as the greenback surged after strong U.S. economic data and comments by U.S. Federal Reserve Chair Janet Yellen further bolstered the case for interest rate hike next month.
U.S. consumer prices recorded their biggest increase in six months in October on rising gasoline costs and rents, suggesting a pickup in inflation that potentially clears the way for the Federal Reserve to raise interest rates in December.
In another report, the Labor Department said initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 235,000 for the week ended Nov. 12, the lowest level since November 1973.
Further downside is expected to be limited as the pair finds strong support at 108.57 should limit further decline and bring rebound towards higher levels in the short term.
To the upside, the strong resistance can be seen at 109.90, a break above this level would take the pair towards next resistance level at 110.65.
To the downside immediate support can be seen at 109.20, a break below this level will open the door towards next level at 108.57.
