- USD / JPY struggled to capitalize on its positive intraday move amid a modest USD pullback.
- Mixed US consumer inflation figures did little to impress traders or boost.
The pair USD/JPY it fell around 45-50 pips from intraday highs and was last seen hovering near the lower limit of its daily trading range, around 108.50.
A combination of support factors helped the pair regain some positive traction on Wednesday and reverse the modest losses of the previous day. The safe haven Japanese yen was hit by underlying bullish sentiment in financial markets. Apart from this, the renewed buying interest of the US dollar provided a modest rise to the USD / JPY pair.
The USD, however, struggled to capitalize on the positive intraday move and shrugged off a modest rally in US Treasury yields.The intraday pullback in the USD accelerated in reaction to mixed inflation figures. to the US consumer The headline CPI rose 0.4% in February, while the basic CPI disappointed estimates and rose 0.1% during the reported month.
The data, while showing a steady rise in cost of living, did little to impress USD bulls or provide a significant boost to the USD / JPY pair. That said, the market reaction, so far, has turned out to be subdued, as investors preferred to wait on the sidelines before a critical 10-year bond auction in the US later during the US session.
With Wednesday’s key data out of the way, broader market risk sentiment will influence the safe-haven JPY and allow traders to seize some short-term opportunities.
Technical levels
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