Home Forex USD/JPY dips below 148.00 with focus on US data and Japanese CPI

USD/JPY dips below 148.00 with focus on US data and Japanese CPI

by SuperiorInvest


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  • US Dollar pares gains as uptrend remains intact.
  • US jobless claims and housing data and Japan’s CPI numbers are likely to determine the direction the pair will take.
  • USD/JPY support levels at 147.11 and 146.35 are likely to sustain the bears.

The Japanese just pared some losses on Thursday American dollar and the recovery in US Treasury yields is losing steam. The pair is trading below 148.00 after pulling back to 148.50 on Wednesday, although the broader trend remains positive.

The U.S. dollar traded slightly lower on Thursday as the positive impact of positive U.S. retail sales moderated. Retail consumption rose at a 0.6% pace in December, beating market expectations for a 0.4% gain.

These numbers highlight the solid economic momentum of the US economy, which is reflected in the Beige Book conclusions, and are expected to keep attempts to lower the US dollar contained.

Later today, weekly jobless claims and housing data will provide further guidance on the US economic outlook. But the main focus will be on Japan’s CPI, the last key inflation measure before next week’s Combat Meeting.

Technical indicators remain bullish, although overbought levels on the charts allow for some downward correction throughout the day. Levis support at 147.11 and 146.35 is likely to hold back the bears. Resistances are 148.50 and 149.75.

Technical levels to watch

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