A look at the 14 February US CPI USDJPY Technical Forecast shows that the pair is down for a fifth straight session, logging a low earlier in Tokyo trading. Dig in for more.
14 February, HotForex – Japanese data today disappointed, with Q4 GDP falling to 0.5% q/q growth as they seasonally adjusted figure. Japan’s Q4 GDP grew 0.5% in Q4’s (q/q, saar) preliminary reading after a revised 2.2% gain in Q3 (was +2.5%). This was a disappointing report, with growth slowing in Q4 by a much larger degree than anticipated.
Of course, Japan’s GDP has improved for eight consecutive quarters, which is broadly constructive. But Japan’s economy is a long way from self-sustaining growth, consistent with the ongoing steady policy from the BoJ.
14 February US CPI USDJPY Technical Forecast
Despite the disappointing GDP figure, USDJPY is down for a fifth straight session, logging a low earlier in Tokyo trading at 106.84, which is the lowest level seen since November 2016. The breach of 107.00 is reportedly significant, being a massive option level. Yen crosses are mostly lower, too, albeit by comparatively moderately degrees. EURJPY ebbed to a three-session low of 132.36, and AUDJPY also forayed into three-session low terrain.
This comes amid a backdrop of mixed equity markets in Asia, where Japanese markets have continued to decline, with the Nikkei 225 closing with a 0.5% loss, contrasting to the 1%-plus gains that the main indexes in South Korea and Hong Kong have seen, while, in the case for USDJPY, there are market narratives pointing to the release of U.S. CPI data later today as likely to evidence still-lacklustre price pressures (given this sentiment, any unexpected acceleration would likely be an explosive dollar buying cue).
This article, 14 February US CPI USDJPY Technical Forecast was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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