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14 November 2017

Forex Technical analysis

How US Producer Price Index impact USDJPY?


USDJPY ground lower on Monday amid negative risk emotion. However, the pair is presumed to trade in a consolidative theme within 111.65 and 114.65 in the next months. Meantime, learn more from the US Producer Price Index impact USDJPY.

14 November, HotForex – The US dollar moved higher after the warmer CPI print, which saw both the headline and ex-food and energy components rise more than forecasts. U.S. PPI rose 0.4% in October for both the headline and core, identical to September’s gains.

US Producer Price Index impact USDJPY

The data are hotter than expected, though in part still seeing some residual impact from the disasters. Goods prices were up 0.3% last month, with energy costs unchanged while food prices were up 0.5%. Compared to last year, headline PPI is at a 2.8% y/y pace, the fastest since February 2012, versus September’s 2.6% y/y, while the core rate is at 2.4% y/y from 2.2% y/y previously.

US Producer Price Index impact USDJPY

The EURUSD dipped under 1.1740 from 1.1750, as USDJPY topped near 113.60 from 113.40. However, gains were short-lived, as both pairings subsequently moved back to pre-data levels. USDJPY bottomed much more aggressively than before at 113.45, while a closing today below the 20-Day MA and current resistance at 113.65, could confirm that the pair is still in a downtrend seen since November 6.

In addition, the pair has been captured in a Rising wedge since late September. Hence a break of the wedge below the Daily Support at 113.10,  would suggest bears are in a major control of USDJPY. The Daily RSI is neutral at 54, while Stochastic holds above 30.

Nevertheless, if pair holds today a support at 113.30, then a possible retest of 113.80 could be seen overnight.

US Producer Price Index impact USDJPY


This article about "How US Producer Price Index impact USDJPY?" 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.

All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.

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