USD/JPY consolidates gains after powering up to 8-year high

USD/JPY consolidated gains during the Asian session after rallying to a fresh 8-year high 123.33 on Tuesday. The pair traded between 122.92-123.31 in Asia, with more profit-taking seen in the late session and pre-European session. A string of upbeat US economic data yesterday helped boost the US dollar. US durable goods orders numbers, new home sales and consumer confidence all gave encouraging signs that the US economic recovery was on track and would increase the case for a rate hike by the Federal Reserve later this year.

EUR/JPY traded a thin range between 133.78-97, and gained some upside momentum late in the Asian session. GBP/JPY was also bid, trading between 189.17-61.

EUR/USD hovered near one-month lows of 1.0864 reached yesterday and traded in a 1.0865-90 range in Asia. The bias is still to the downside due to diverging Fed and ECB expectations, and of course the continuing Greek debt concerns will keep the euro under pressure.

EUR/GBP traded between 0.7065-73, near the 0.7060 low of yesterday. There is scope to head towards the march 2011 low of 0.7014.

GBP/USD was steady between 1.5379-99 in Asia after losses yesterday to 1.5355.

USD/CHF moved off from a high of 0.9540 to 0.9515, although broad USD strength will likely keep the bias to the upside. EUR/CHF was under pressure again, trading from 1.0370 to 1.0355.

AUD/USD opened in Asia at 0.7735, traded a choppy session between 0.7726-54. There was a bounce higher at the end of the session but the bias is still down on broad USD strength.

NZD/USD opened in Asia at 0.7224, traded 0.7218-57. A risk event for the kiwi will be the Fonterra board meeting.

The post USD/JPY consolidates gains after powering up to 8-year high appeared first on Forex Circles.

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