Japanese yen is one of the best performing G10 currencies today. JPY caught a bid following release of Japanese CPI inflation report for January. Data showed core CPI inflation slowing from 2.3% to 2.0% YoY, while economists expected a slowdown to 1.8% YoY. Headline CPI inflation slowed from 2.6% to 2.2% YoY (exp. 1.9% YoY). A smaller than expected deceleration in price growth can be seen as 'hawkish' development, and it is keeping up market hopes for Bank of Japan to exit negative rates. Currently, money market are pricing in an around-80% chance of BoJ hiking rates out of negative territory at its meeting in April.
Taking a look at USDJPY chart at H1 interval, we can see that the pair has been trading sideways in the 149.85-150.75 range recently. The pair broke below the 200-hour moving average (purple line) today. A point to note is that this moving average has acted as a kind of moving, upward trendline recently, therefore a drop below may hint that a deeper decline is looming. A near-term support level to watch can be found in the 149.85 and 149.60 areas. The pair may experience some additional volatility this afternoon when US durable goods orders report for January and Conference Board index for February are released at 1:30 pm GMT and 3:00 pm GMT, respectively.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
