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USD/JPY bulls committed on 124 handle

FXStreet (Guatemala) - USD/JPY is currently trading at 124.28 with a high of 124.53 and low of 124.05.

USD/JPY is heading in to the closing hours down on the week post the activity around the PBoC devaluing the Yuan reference rate by 4.66% in total over three consecutive cuts. As a safe haven, the Yen bounced back vs the greenback and with markets priced in to a September hike, the positions were unwound in long dollar and that added to the downside in the major. However, the greenback got a little boost today, ahead of key CPI's and FOMC minutes week, in the PPI's.

US PPI rose a seasonally adjusted 0.2% in July versus 0.1% consensus. Core prices rose 0.3% in July versus 0.1% expected. producer prices fell 0.8% Y/Y while core prices were up only 0.6%.

USD/JPY looking to close on 124 handle ahead of key levels

USD/JPY bulls remain committed on the 124 handle while the June peak at 125.86 would be the next target through the recent highs on the 125 handle, ahead of the May 1997 high at 127.48. "We will retain our weekly bullish forecast while the 123.01 late July low underpins. Above it the accelerated uptrend line can be seen at 124.49," said Karen Jones, chief analyst at Commerzbank.

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