- USD/JPY retreats, US dollar pressured by selling.
- US CPI inflation declines, raising hopes of rate cuts.
- Japanese GDP will be released early Thursday.
The USD/JPY pair eased on Wednesday, retreating to the 155.00 area, after the US Dollar (USD) fell across the board, losing weight against major currencies. The Japanese Yen (JPY) is also recovering from widespread selling pressure in the markets, regaining ground as the Dollar retreats.
US Consumer Price Index (CPI) inflation fell on Wednesday, with April headline CPI inflation at 0.3%, versus the market forecast of holding at 0.4%. Easing inflationary pressures are fueling rising rate cut hopes, as investors clamor for a rate cut from the Federal Reserve (Fed).
Japan's Gross Domestic Product (GDP) growth, expected for early Thursday's session in Pacific markets, will follow. Japan's growth is expected to contract in the first quarter, at -0.4% compared to 0.1% in the previous quarter.
USD/JPY Technical Outlook
The USD/JPY pair fell sharply on Wednesday, falling from weekly highs near 156.80 to trading in the 155.00 area. Despite the short-term decline triggered by a relief rally in the Yen, USD/JPY continues to trade on the upside of a recent swing low at 152.00 after the pair fell from multi-decade highs above 160.00 .
The USD/JPY pair continues to trade higher, charting north of the 200-day EMA at 148.44. The closest technical support is the 50-day EMA at 153.28.
USD/JPY hourly chart
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.
