USDJPY runs higher. Looks toward the May high | Forexlive

The USDJPY has sliced through the June high at 148.019, and has now reached the high price from May at 148.647. The high price just traded at 148.669. Looking at the 4-hour chart there is a swing area between 148.56 and 148.73.

Moving above that level and traders will target the 50% midpoint of the move down from the early January high to the April low (the range for 2025). That 50% midpoint comes in at 149.375.

The dollar has been moving higher, helped by a second look at the CPI. The core goods CPI increased by 0.7% which was the highest level in two years. According to Pantheon Macroeconomics, the gain implies a core PCE gain of 0.35% when it will be released later this month (subject to PPI data tomorrow). The core PCE is the favored measure of inflation from the Fed and gives them an excuse to keep rates steady.

Looking at key items from report likely impacted from tariffs:

• men’s shirts and sweaters +4.3%
• women’s dresses +3.9%
• cookware and tableware +3.7%
• appliances +1.9%
• toys +1.8%

US yields are now higher across the curve. The 2-year yield is up 4.6 basis points while the 30-year yield is up 1.2 basis points.

Pres. Trump sees things differently: