USD/JPY Exchange Rate Recovers from Yearly Low
As shown on the USD/JPY chart, today the exchange rate aggressively surged above the 153 yen per US dollar level. This marks a strong recovery from the yearly low of around 151 yen per dollar, set last week.
Today's bullish momentum developed following a statement from Japan's Minister of Industry, Yoji Muto, who mentioned that the government had asked the United States to exempt Japan from the tariffs imposed by the Trump administration.
Can the USD/JPY rise continue?
Technical analysis of the USD/JPY chart reveals that key extremes over the last three months form the contours of an upward channel, with:
From a bullish perspective: The exchange rate is rising towards the median, which tends to "attract" the price as demand and supply balance in this region.
From a bearish perspective: The 154 yen per dollar level, which acted as support in February (shown by arrows), may hinder further growth.
The future direction of the USD/JPY pair largely depends on a key upcoming news release, which could have a significant impact on the US dollars value against other currencies. At 16:30 GMT+3 today, the CPI report will be published, shedding light on the current inflation situation. Be prepared for potential volatility spikes.
Read more: https://fxopen.com/blog/en/oa-usd-jpy-exchange-rate-recovers-from-yearly-low/
Text source: Forex Trading Blog
