USD/JPY hits fresh seven-month highs above 141.50

• US UoM Consumer Confidence Index improves to 63.9 in June surpassing expectations.
• US yields are modestly higher supporting USD/JPY. 
• The pair is testing the relevant 141.50 area. 

The USD/JPY reached its highest level since November 2022, hitting 141.57 following the release of positive US economic data. However, the pair has been unable to consolidate above the 141.50 area.

Data released on Friday showed Consumer sentiment in the US improved in early June measured by the University of Michigan's (UoM) Consumer Confidence Index that rose to 63.9 from 59.2 in May, surpassing the market expectation of 60.

US Treasury yields spiked after the report with the 10-year reaching 3.80%. As yields pullback, the USD/JPY lost momentum. If the pair manages to stay above the 141.50 area, the Dollar could gain support. However, if it fails to do so, a correction seems likely.

Life after central bank meetings

On Wednesday, the Federal Reserve (Fed) kept interest rates unchanged but signaled that rates could be raised at the next meeting. A few hours ago, the Bank of Japan also kept its monetary policy stance unchanged. The BoJ's statement was seen as dovish, as it offered no guidance on an exit from ultra-accommodative policies.

Following a busy week, the economic calendar ahead is relatively light. The most significant events in the US will be Jobless Claims and the June preliminary S&P Global PMI. In Japan, inflation data is due on Friday.

Technical levels