USD/JPY has had several large reactions to U.S. CPI prints over the past couple of years, including the reversal last July that saw more than 2,000 pips taken-out as the spillover of carry unwind hit global equity markets.
As recession fears hit in the U.S. in the first-half of the year, USD/JPY was in a vulnerable state until finding support at the familiar 140.00 handle in late-April. Since then, however, even as the USD posted fresh multi-year lows, USD/JPY held higher-lows with respect of the 140.00 level from April and then 142.50 in May and June.
And now that U.S. CPI is heading higher, bringing to question the rate cuts markets are still pricing in around the Fed into the end of the year, USD/JPY shorts are being squeezed again, allowing for fresh three-month highs in the pair.
USD/JPY has been difficult to chase this year and there's some resistance sitting overhead, in the form of the 200-day moving average and then the 150.00 psychological level. For support, the 148.13 Fibonacci level is of note for pullback scenarios. - js
As recession fears hit in the U.S. in the first-half of the year, USD/JPY was in a vulnerable state until finding support at the familiar 140.00 handle in late-April. Since then, however, even as the USD posted fresh multi-year lows, USD/JPY held higher-lows with respect of the 140.00 level from April and then 142.50 in May and June.
And now that U.S. CPI is heading higher, bringing to question the rate cuts markets are still pricing in around the Fed into the end of the year, USD/JPY shorts are being squeezed again, allowing for fresh three-month highs in the pair.
USD/JPY has been difficult to chase this year and there's some resistance sitting overhead, in the form of the 200-day moving average and then the 150.00 psychological level. For support, the 148.13 Fibonacci level is of note for pullback scenarios. - js
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.