The USDJPY rose to six-week high on Monday after markets digested comments from Fed Chair Powell last Friday and hawkish stance that the central bank kept, sent stocks lower and further lifted the dollar.
Strong Fed’s hawkish stance that signals prolonged period of higher borrowing cost but also widens the divergence between the US and other major central banks’ monetary policies, remains the main driver of the US dollar, along with growing uncertainty about further slowdown in economic growth, as a result of higher interest rates.
Bulls cracked 139 barrier and pressure 2022 high (139.39) violation of which would expose psychological 140 level and risk acceleration towards 1998 peaks, if conditions remain unchanged or worsen.
Res: 139.00; 139.39; 140.00; 141.51.
Sup: 138.00; 137.53; 137.15; 136.59.
