- USD/JPY fell towards 150.90, with losses of 0.50%.
- US headline and core CPI slowed in October.
- US Treasury yields sink, weakening the Dollar.
On Tuesday, the USD/JPY pair fell sharply towards the 150.90 area, recording losses close to 0.50%. The pair retreated amid weak US Consumer Price Index (CPI) data, which fueled a drop in US Treasury yields and hawkish bets on the Federal Reserve (Fed). .
The US Bureau of Labor Statistics (BLS) revealed that inflation in the US decreased to 3.2% year-on-year in October, based on changes in the Consumer Price Index (CPI). The core CPI, which excludes volatile food and energy prices, rose 4% over the same period, missing analyst forecasts for a 4.1% rise. On a monthly basis, the headline CPI remained stable, while the core CPI recorded a growth of 0.2%.
In reaction, US Treasury yields at the 2.5-year and 10-year rates fell more than 2% to 4.86%, 4.46% and 4.48%, respectively, which appears to push the pair higher. Attention now focuses on Wednesday’s Producer Price Index (PPI) and retail sales figures for October to continue placing bets ahead of the upcoming Fed meetings.
USD/JPY levels to watch
On the daily chart, the USD/JPY pair has a neutral to bearish bias with a consolidation phase underway, suggesting that buyers are regrouping after a six-day winning streak. The Relative Strength Index (RSI) is sloping negatively above its midline, indicating weakening buying pressure, while the Moving Average Convergence (MACD) features shorter green bars. In a broader context, despite showing a negative outlook in the short term, the pair is above the 20,100,200-day SMA, suggesting that the bulls are firmly in control in the future. broader context.
Supports: 150.30 (20-day SMA), 150.00, 149.00.
Resistances: 151.00, 151.70, 152.00.
USD/JPY daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
