Dollar Rebounds, But Falters Below Key Support at 155.20
The US dollar rebounded against the Japanese yen on Thursday after Producer Price Index (PPI) data showed inflationary pressures are increasing, making a Federal Reserve rate hike more likely next week. However, the USD/JPY pair struggles to stay above 154.00 as it is still on track for a 1.4% weekly decline.
The dollar broke key support at 155.20 earlier this week, which is likely to pose significant resistance for bulls. Momentum indicators in the daily chart remain deeply within bearish levels, suggesting that rallies are likely to find sellers.
The Japanese yen has been boosted by rising crude oil prices, but its appreciation is being hindered by Japan's economic growth being impacted by these high energy costs. On the upside, bears will meet resistance at 155.20 and then at 156.76 and 158.00 before reaching key support at 152.10.