USD/JPY ekes out gains despite risk-off in Asian equities
|- USD/JPY is better bid amid losses in the Asian equities.
- The uptick could be associated with technical factors.
- An above-forecast US inflation could bode well for USD/JPY.
USD/JPY, which traded at lows near 105.00 in early Asian, rose to a session high of 105.58 a few minutes before press time despite the losses in the Asian equities.
As of writing, Japan's Nikkei is down 260 points or 1.26% and stocks in Australia, South Korea are reporting 0.32% and 0.60% losses, respectively.
Hong Kong's Hang Seng index is currently shedding 372 points or 1.44%. Violent protests are dragging Hong Kong "to the brink of no return," the city's leader warned earlier today.
Even so, the anti-risk Japanese Yen has come under pressure in the last couple of hours. The uptick in the USD/JPY could be associated with the developments on the technical charts. Notably, the hourly chart was reporting a bullish divergence of the widely followed relative strength index earlier today. A bullish divergence is considered a sign of seller exhaustion.
Also, the 0.23% rise in the S&P 500 futures could be helping USD/JPY chart gains.
Focus on US CPI
The US inflation, as represented by the consumer price index (CPI), is forecast to rise 0.3% month-on-month in July, following a 0.1% rise in June. The core CPI is seen printing at 0.2%.
Trading the US Dollar on the CPI news is rather straightforward, writes FXStreet's Yohay Elam.
"An acceleration to 2.2% or higher would boost the greenback while a miss of 2% or lower may send it lower"
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.