• The US UoM consumer confidence index improved to 63.9 in June, beating expectations.
  • US yields are slightly higher, supporting USD/JPY.
  • The pair is testing the relevant 141.50 area.

The USD/JPY it hit its highest level since November 2022 and reached 141.57 after the release of positive US economic data. However, the pair failed to consolidate above the 141.50 area.

This was shown by data published on Friday US consumer sentiment improved in early June, as measured by the University of Michigan (UoM) consumer confidence index, which rose to 63.9 from May’s 59.2, beating market expectations of 60.

U.S. Treasury yields rose after the report, with the 10-year yield at 3.80%. USD/JPY lost momentum as yields fell. If the pair manages to hold above the 141.50 area, the dollar could find support. However, if it doesn’t, a fix seems likely.

Life after central bank action

The Federal Reserve (Fed) left interest rates unchanged on Wednesday, but indicated that rates could be raised at the next meeting. A few hours ago, the Bank of Japan also kept its position Monetary Policy attitude unchanged. The BoJ’s statement was seen as dovish as it offered no guidance for an exit from ultra-accommodative policy.

After a challenging week, the economic calendar ahead is relatively light. The highlights in the US will be Jobless Claims and June’s preliminary S&P Global PMI. In Japan, inflation data is due on Friday.

Technical levels

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