The USDJPY pair is on the rise as additional tariffs on some products will be delayed to December 15.
13 August 2019, GKFX – After inching closer to the critical 105 handle for the second straight day on Tuesday, the USDJPY pair is staging a modest recovery in the early trading hours of the American session as the upbeat inflation data from the US seem to be helping the Greenback gather strength. As of writing, the pair was virtually unchanged on the day at 105.27.
US CPI report gives small boost to DXY
The monthly data published by the US Bureau of Labor Statistics today revealed that the core Consumer Price Index (CPI), which strips food and energy prices, ticked up to 2.2% in July to beat the market expectation of 2.1%. Although the Federal Reserve’s preferred gauge of inflation is the Personal Consumption Expenditures (PCE) Price Index, the positive reading helped the US Dollar Index erase its daily losses to turn flat near 97.40.
Additionally, the inflation data allowed the 10-year US Treasury bond yield to turn positive on the day and supported the positively-correlated USD/JPY pair’s recovery. Markets are now waiting to see how Wall Street will perform on Tuesday.
There won’t be any other macroeconomic data releases in the remainder of the day. During the Asian session on Wednesday, Retail Sales and Industrial Production from China will be watched closely as they have the potential to greatly impact the market sentiment.
USDJPY technical analysis
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