USD JPY

The timing of Moody’s U.S. downgrade couldn’t be worse for a dollar already looking shaky. With EUR/USD and USD/JPY testing key levels and gold extending its bounce, traders will be watching trade and tax headlines closely to kick off the new week.

Traders searching for clues in Moody’s downgrade may find little from past episodes. But in a market questioning U.S. credibility, USD/JPY could start to reflect that doubt.

The weekly USD bar doesn’t look all that strong but the context matters, as USD bulls have so far defended higher-low support from the daily chart.

Big downside surprises in US producer prices, retail sales, and factory output fuelled hopes the Fed could cut sooner, knocking yields and lifting equities. Gold loved it, crude didn’t—but FX markets stayed aloof, clinging to the charts over fundamentals.

USD/JPY started the week with a strong breakout but that’s snapped back over the past three days, bringing with it questions around the trend in JPY.

GBP/USD rises after a jump in Q1 GDP. USD/JPY falls ahead of US data dump & Fed Powell’s speech.

USD/JPY rallied nearly 6.3% off the yearly low with the advance faltering this week at the yearly downtrend. Battle lines drawn on the short-term technical charts.

The US Dollar held just inside of 102 on Monday and then pulled back after CPI tomorrow. Bulls have so far held a higher-low but this puts a lot of emphasis on tomorrow’s economic calendar.

USD/JPY seems to be reversing ahead of the April high (150.49) as it gives back the advance from the start of the week.

Japanese Yen is on the defensive as a four-week rally in USD/JPY struggles at technical resistance. Battle lines drawn on the USD/JPY weekly chart.

USD/JPY is showing bullish consolidation after the US CPI report showed that US consumer prices rose less than expected in April, marking the smallest annual increase since February 2021.