Dollar Rebound Against Yen Faces Resistance at 155.20

The US Dollar has seen a rebound against the Japanese Yen (JPY) after PPI data indicated inflationary pressures, boosting hopes of a Federal Reserve rate hike next week.

However, this recovery is expected to be tested at the 155.20 level, which serves as significant resistance for USD bulls.

The pair broke key support in the 155.20 area earlier this week, and momentum indicators remain deeply within bearish levels.

Oil prices have rallied further due to the situation in the Gulf, posing strong pressure on the Japanese economy and acting as a headwind for further Yen appreciation.