USD/JPY: Dollar strength puts key resistance to the test – ING

Japanese manufacturing sentiment is strengthening as semiconductor and data centre demand, robust corporate profits and firm wages provide support, ING’s Chris Turner reports. These conditions could bolster the Bank of Japan’s (BoJ) confidence that inflation is holding steady near 2%.

Firmer Japanese data confront Dollar strength

"All of the above can feed into the Bank of Japan's view that inflation is now stable at 2.00% and its accommodative monetary policy can be reined in."

"The broadly strong dollar means that USD/JPY could easily push through resistance at 159, but we increasingly think investors will be looking to acquire cheap yen should USD/JPY push above 160 again."

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(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)