- USD/JPY rises 0.37%, boosted by November CPI data that confirmed analyst expectations.
- The US headline CPI rose slightly, but underlying numbers remained stable, supporting potential Fed rate adjustments.
- Anticipation is growing for a possible Fed rate cut, with odds favoring a 25 basis point reduction next week.
USD/JPY rose around 0.37% at the start of the North American session as traders digested the release of November US Consumer Price Index (CPI) figures, which were in line with the consensus. At the time of writing, the pair is trading volatile around 152.50.
USD/JPY rises, responding to inline CPI numbers and stable Treasury yields
The US Bureau of Labor Statistics (BLS) revealed that the headline CPI was 0.3% monthly, one tenth higher, but in line with estimates of 0.2%. Core CPI was unchanged at 0.3% m/m, which was in line with October and Wall Street projections.
In the twelve months to November, the CPI rose from 2.6% to 2.7%, while the core CPI was unchanged compared to October, as consensus projected at 3.3%.
Following the data, USD/JPY resumed its bullish trend, while the 10-year US Treasury note yield pared its earlier gains, settling flat at 4.226%.
The November CPI has increased the odds that the Fed will cut interest rates another 25 basis points (bps), with the odds at 84%, according to the CME FedWatch tool.
Fountain: Prime Market Terminal (PMT)
Pepperstone’s Michael Brown says the numbers should not deter the FOMC from a quarter-point cut next Wednesday.
This week, the US economic agenda will include the release of the Producer Price Index (PPI) along with initial jobless claims figures for the week ending December 7.
USD/JPY Price Forecast: Technical Outlook
The USD/JPY daily chart suggests that bulls are facing strong resistance at the Kijun-Sen at 152.69, failing to gain traction, which could lead the pair to rally towards the Nov 20 high of 155.89, ahead of the daily peak of 156.75 on November 15. However, the pair has been forming a successive series of lower highs and lower lows, and unless the bulls break out of Kijun-Sen, sellers could take prices inside the Ichimoku Cloud.
With further weakness, USD/JPY could fall below 152.00 and extend its losses towards the 100-day SMA at 148.65.
Japanese Yen PRICE Today
The table below shows the percentage change of the Japanese Yen (JPY) against major currencies today. Japanese Yen was the strongest currency against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.09% | -0.06% | 0.20% | -0.07% | 0.06% | -0.02% | -0.19% | |
| EUR | 0.09% | 0.03% | 0.24% | 0.01% | 0.15% | 0.06% | -0.11% | |
| GBP | 0.06% | -0.03% | 0.19% | -0.02% | 0.12% | 0.03% | -0.13% | |
| JPY | -0.20% | -0.24% | -0.19% | -0.22% | -0.07% | -0.17% | -0.33% | |
| CAD | 0.07% | -0.01% | 0.02% | 0.22% | 0.14% | 0.05% | -0.12% | |
| AUD | -0.06% | -0.15% | -0.12% | 0.07% | -0.14% | -0.09% | -0.25% | |
| NZD | 0.02% | -0.06% | -0.03% | 0.17% | -0.05% | 0.09% | -0.16% | |
| CHF | 0.19% | 0.11% | 0.13% | 0.33% | 0.12% | 0.25% | 0.16% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change shown in the box will represent the JPY (base)/USD (quote).
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.
