USDJPY is trading up 0.07% at 143.665
The U.S. dollar pushed higher in early European trade Thursday, with buyers returning ahead of next week’s Federal Reserve meeting, while the yen struggled to hold the previous session’s gains.
At 02:50 ET (06:50 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% higher to 109.593, not far removed from its two-decade peak of 110.79.
Attention has now switched to next week’s Fed meeting, with traders positioning for the U.S. central bank to become even more aggressive next week in its battle to curb inflation in the wake of Tuesday’s hot consumer prices report.
“This period in the global macro-financial cycle again recalls the early 1980s experience with Paul Volcker at the helm of the Fed. To put the inflation genie back in the bottle, Volcker took policy rates to 15% and was prepared to accept recession as collateral damage,” said analysts at ING, in a note.
USD/JPY rose 0.4% to 143.64, rebounding after falling 1% in the previous session on reports that the Bank of Japan had checked on exchange rates with banks.
However, the Japanese authorities failed to follow through with any concrete measures, and with the Bank of Japan unlikely to raise rates this year and data released Wednesday showing a record Japanese trade deficit for August, yen selling has resumed.
On technical fronts USDJPY: RSI stood at 68.49 and currently it is trading above all MA. So, BUY position can be taken with following target and stoploss: