- USD / JPY is defensive near 115.00.
- US yields show mixed performance on Wednesday.
- The headline CPI for the US rose 7% year-on-year in December, in line with estimates.
The USD accelerates its losses and drags the USD/JPY to the weekly lows near the 115.00 level on Wednesday.
USD / JPY looks to yields, weakened by data
USD / JPY resumes its monthly decline, rapidly reversing Tuesday’s rally, refocusing once again on the lower end of the range at the 115.00 zone.
The mixed performance in the US markets shows modest gains in yields at the short end of the curve, while the long end adds to the recent decline and revisits the 2.05% zone, respectively.
On the economic agenda, the selloff of the dollar, and the fall of the pair took an additional pace after the US inflation figures measured by the general CPI increased 7.0% in the year to December, coinciding with the forecasts and thus eliminating the surprise factor, which seems to have hurt the sentiment of many. The underlying reading beat consensus after prices rose 5.4% from the same month in 2021.
Technical levels
At time of writing, the pair is shedding 0.20% at 115.07 and is facing the next support at 114.94 (Jan 3, 2022 low) followed by 114.19 (55-day SMA) and then 113.14 (Dec 17 low) . On the positive side, an overcoming of 116.35 (maximum of January 4, 2022) would point to 115.00 (round level) and finally to 115.62 (maximum of January 19, 2017).
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