The US dollar was trading higher against the yen on Tuesday and was seen 0.25% stronger during the London session, with the USDJPY pair briefly jumping above the 200 day moving average and trading around 110.30 in the morning.
With the Trump-Kim meeting ending in a positive mood and leaders signing document opening way to the denuclearization of the Korean peninsula, markets were trading in a positive mood. Stocks were higher, but most of the gains were booked on Monday.
Later today, the US CPI numbers are due, with inflation expected to accelerate further in May to 2.7% from 2.5% in April, whilst the core gauge is seen to tick higher slightly to 2.2%. Rising inflation should be positive for the USDJPY pair and bulls could push the greenback closer toward the 111 mark.
The US dollar jumped above the resistance level of 110 and also beyond the mentioned 200 DMA, which leaves a bullish outlook for today’s trading. The next resistance is seen at 110.50 and if broken, further rise toward the 111 mark could occur.
On the other hand, the support is now in the 110 zone and if not held, the pair could deteriorate to 109.70. In all cases we strongly recommend to have rigorous money and risk management.
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