Fundamental overview of the ninja
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 headline Personal Consumption Expenditure Price Index (PCE) data for May, which will be released on Friday. The PCE inflation report is estimated to show that price pressure grew 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 pair would need to close in negative territory below the annual level of 159.15, with bears targeting the key level of 157.00 and the annual level of 155.89.
For a look at all of today’s economic events, check out our economic calendar. You can also follow our Facebook page to stay updated on the latest economic news and technical analysis.
