US Dollar Faces Resistance at 155.20 as Recovery Gains Momentum
The US Dollar (USD) is showing signs of recovery against the Japanese Yen (JPY), but it's likely to face resistance at a key level. The USD/JPY pair has been struggling to stay above 154.00 after bouncing from seven-month lows below 153.00 earlier this week.
The Greenback regained some ground on Thursday due to the US Producer Price Index (PPI) figures, which confirmed that the energy shock is boosting inflationary pressures and provided further reasons for the Federal Reserve (Fed) to tighten its monetary policy at next week's meeting.
Markets have ramped up expectations of a rate hike next week, but they await US Consumer Price Index (CPI) figures due later on Friday for confirmation. Oil prices have also rallied further as the situation in the Gulf complicates, with Brent Oil trading at four-month highs well above $100.