How to trade USD/JPY amid US Consumer Price Index news
|The U.S. Dollar (USD) skyrocketed against the Japanese Yen (JPY) the last week, increasing the price of the USDJPY pair to more than 109.00 ahead of the release of U.S. Consumer Price Index news. Technical Analysis As of this writing, the USDJPY pair strengthens around 109.10. The pair might face some resistance near the listed below price levels: Short-Term Resistance 109.53 – the major horizontal resistance 110.95 – the high of May 05, 2019 112.00 – the psychological level On the downside, the pair might find some sustainability near the listed below support levels: Short-Term Support 107.92 – the key horizontal support 107.00 – the psychological number 106.32 – the 38.2% fib level support U.S. Consumer Price Index News The U.S. Department of Labor Statistics is all set to release numbers for the consumer price index tomorrow (March 10, 2021). According to economists, the consumer price index might improve and register a reading of 0.2% in February, as compared to a reading of 0.0% in the month before. The Consumer Price Index (CPI) estimates the change in the prices of retail products. It compares the prices of different products, including goods and services after selecting them from a representative shopping basket on a sampling basis. It is worth mentioning here that the index doesn’t include prices of volatile items, such as food and energy to avoid a biased reading. Generally speaking, a high reading strengthens the U.S. Dollar and suggests a bullish trend for the USD/JPY and vice versa. Conclusion Considering the price movement of the precious metal over the past few days, it may be a better option in the short term if the pair was bought at around 108.00. Due to the volatile nature of the market, however, prices may change and lead to different outcomes.
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