FXStreet (Córdoba) - The USD/JPY pushed to fresh daily highs at the beginning of the American session despite softer-than-expected US inflation data.
US Producer price index unexpectedly declined 0.2% in May following a 0.6% gain in April. Even though USD/JPY initially dipped on the data, it quickly bounced and reached a fresh daily peak of 102.13. At time of writing, the USD/JPY is trading at the 102.05 area, recording a 0.36% gain but still set for a weekly loss.
USD/JPY technical perspective
"The USD/JPY regains the 102.00 level as US stocks aim higher ahead of the opening, halting the past two days bleeding. Short term, the hourly chart shows price nearing 100 SMA that maintains a bearish slope, while indicators stand near overbought readings", says Valeria Bednarik, chief analyst at FXStreet. "In the 4 hours chart indicators present a strong upward tone, but remain below their midlines, suggesting the rally is not yet ready to extend: steady gains above 102.35 are required to confirm some further gains, looking then for a max of 102.80 for today".