- USD/JPY easing back, US Dollar sees broad-market selling pressure.
- US CPI inflation ticked lower, sparking rate cut hopes.
- Japanese GDP in the barrel for early Thursday.
USD/JPY eased on Wednesday, backsliding into the 155.00 handle after the US Dollar (USD) eased across the board, shedding weight against all of its major currency peers. The Japanese Yen (JPY) is also finding a reprieve from broad-market selling pressure, recovering ground as the Greenback recedes.
US Consumer Price Index (CPI) inflation ticked lower on Wednesday, with headline CPI inflation in April ticking down to 0.3% compared to the market’s forecast of a hold at 0.4%. Easing inflation pressures are sparking a rise in rate cut hopes as investors clamor for a rate trim from the Federal Reserve (Fed).
Up next is Japan’s Gross Domestic Product (GDP) growth, slated for during Thursday’s early Pacific market session. Japan’s growth is forecast to contract in the first quarter, expected to print at -0.4% compared to the previous quarter’s 0.1%.
USD/JPY technical outlook
USD/JPY knocked sharply lower on Wednesday, tumbling from the week’s highs near 156.80 to trade at the 155.00 handle. Despite the near-term decline sparked by a relief rally in the Yen, USD/JPY is still trading on the high side of a recent swing low into 152.00 after the pair fell from multi-decade highs above 160.00.
USD/JPY is still trading firmly in bull country, holding chart paper north of the 200-day Exponential Moving Average (EMA) at 148.44. The nearest technical support sits at the 50-day EMA at 153.28.
USD/JPY hourly chart
USD/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
