The USDJPY pair has resumed winning streak for 5-days and seems balanced above the 122 price mark. The pair is observing a rally and has registered a fresh six-year high at 122.42. The broader weakness in the Japanese yen is weighing pressure on the asset.
Increasing prices in metals are ruining the Japanese economy. Japan, being one of the major importers of oil and metals is facing some serious holes in its exchange flows.
The outperformance of the US dollar index is also pulling the pair. The DXY is gradually moving higher as investors have started betting on a 50-basis point (bps) interest rate hike by the Federal Reserve. The inflation mess in the US is getting out of the grip and Fed policymakers are left with no other option than to elevate the interest rates swiftly.
For now, Japanese Finance Minister Shunichi Suzuki has revealed that the administration will consider steps to handle with price hikes after PM instruction expected next week. This may bring some stability to the Japanese yen.
Looking forward for today, traders will focus on the US Pending Home Sales and Michigan Consumer Sentiment Index, which is due on Friday while the Statistics Bureau of Japan will report the Unemployment Rate next week.
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