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Forex

USDJPY price rebounds to 105.27 on trade war news

USDJPY price rebounds to 105.27 on trade war news

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

The market is rising sharply and breaking several levels of resistance. Bulls likely intend to reach 107.10 resistance on the way up. Immediate support is seen at 106.30 and the 106.12 levels.
 

Disclaimer

This article was provided by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you, then this should be solely at your discretion, and GKFX will not be held accountable in any way.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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