-1698136513.png)
Japanese CPI Rises
The Japanese Yen is turning higher today on the back of the latest set of inflation figures, released overnight. BOJ core CPI was seen rising to 3.4% last month, up from 3.3% a month prior and above the 3.3% the market was looking for. With JPY continuing to depreciate over recent weeks, speculation has been building that the BOJ might be forced to intervene once again. However, today’s inflation data is now seeing those declines pause for now, helped by a retreat in USD.
US Yields Falling – Data Due
USD has slipped in line with the fall back seen in US treasury yields yesterday. After popping to above 5%, yields on 10-year paper fell back to around the 4.84% level by end of day driven, it seems, by a tweet from Bill Ackerman. The hedge fund titan tweeted that he was closing out the short bond position citing global uncertainty and an underlying weakness in the US economy. Looking ahead today, USDJPY has room to correct lower still if we see US PMIs coming in short of forecasts. Both readings are expected to have fallen back into negative territory last month which, if confirmed, should be enough to keep USD weakness on the table into the middle of the week.
Technical Views
USDJPY
The rally in USDJPY has become more laboured over recent weeks. While price has continued to hug the bull channel top, growing bearish divergence on momentum studies suggests reversal risks are growing near-term. If we do correct more meaningfully here, 145 will be the next key support to note.
.png)
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.