- Key data ahead: US November inflation
- The Fed meeting begins, on Wednesday it would raise the rate by 50 basis points.
- USD/JPY hits 12-day high, but fails to break above 138.00.
The USD/JPY is moving sideways on Tuesday near 137.50/70in the preview of important US economic data. In the Asian session the pair climbed to 137.96, the highest level since December 12, and then turned around falling to 137.31.
The and in it operates on neutral ground throughout the market, while Treasury yields do not register significant variations. This may change at 13:30 GMT when the November US retail inflation figures are released. The market consensus is for the annual rate to move from 7.7% to 7.3%. This would be the lowest in 11 months and still well above the Federal Reserve’s target.
The US central bank will decide on monetary policy on Wednesday. A rise of 50 basis points is expected. Tuesday’s inflation data will be taken into account by the Fed and is estimated to have a major impact on the market, especially USD/JPY, affected by the dollar and Treasury bond yields.
The pair comes in with fading bullish strength after failing to break above 138.00, which is the key barrier. In case of affirming above, the dollar would be ready to extend the rises. The next strong resistance is seen at 139.60. On the downside, 137.20 is the first support, followed by 136.10/20.
technical levels
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.
