USD/JPY jumps to 105.75 as US dollar strengthens ahead of Fed’s minutes
- US dollar gains momentum across the board, ahead of FOMC minutes.
- USD/JPY recovers half of Tuesday’s losses, bullish intraday bias intact while above 105.60.
The USD/JPY pulled back to 105.15 and rebounded sharply, breaking above Asian session’s highs and reached a fresh daily high at 105.76. As of writing, it trades at 105.70, up after falling during three consecutive days.
A stronger US dollar across the board boosted the USD/JPY further higher. The greenback has gained momentum during the American session amid a modest rebound in US yields and ahead of the release of the FOMC minutes.
The US Dollar Index (DXY) printed a fresh high around 92.60 and is up 0.35% on Wednesday, ending a five-day losing streak. The dollar has strengthened versus the G10 group but is remains in negative territory versus emerging market currencies. The Swiss franc and gold dropped considerably over the last hours.
At the July meeting, the Fed, as expected, kept monetary policy unchanged. Analysts will look into the minutes for clues about what the Fed could announce at the September meeting considering that by then the central bank could have completed its strategy review.
Technical levels