Ninja Basic Overview
The dollar-yen is also moving against a backdrop of rising geopolitical tensions and global economic uncertainty. Investors are closely monitoring statements from Federal Reserve officials and key macroeconomic data, looking for clues about future policy moves. U.S. inflation fell more than expected in May, but U.S. central bank officials expect a one-time drop in price pressures to be insufficient to justify an upcoming rate cut.
Looking ahead, dollar-yen investors will remain focused on the main Personal Consumption Expenditures Price Index (PCE) data for May, which will be released on Friday. The PCE inflation report is expected to show that price pressure increased at a slower pace of 0.1% month-on-month compared to the previous release of 0.2%.
Technical Analysis and Forecast Dollar Yen
At the time of writing, the price of the ninja is trading at 160.49, down 0.15% and in full weekly bullish momentum after the LONG breakout of the 159.15 annual level that brought the pair to update the 38-year high. Such a positive weekly close will allow the dollar yen to have the necessary strength to continue the rally, with the 163.63 annual level representing the next main LONG target.
Conversely, to see a first semblance of a correction, the exchange rate should close in negative territory below the annual level of 159.15, with the bears targeting the key level of 157.00 and the annual level of 155.89.
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