Although the dollar was taking a beating against a strong euro during and a little after Draghi’s speech, the sugar rush did little to hold USDJPY low. Core durable goods and jobless claims came out better than expected at 1.2% and 206K. The two economic releases were expected at 0.1% and 218K respectively, pummelling expectations. Safe- haven outflows supported the currency pair to break to a fresh July high
Will Dollar Give Up Its Gains?
The USDJPY high of 108.75 was reached after bulls pushed prices above the 108.60 July- high resistance. Trading within an ascending channel, chances of further upside towards 109 remain elevated. However, the 108.28 support must remain firm should prices start a decline in the short-term.
