USD/JPY hits 4-month lows on dismal US inflation figures
|A fresh wave of greenback selling interest emerged during early NA session, with the USD/JPY pair refreshing multi-week lows post dismal US CPI print.
The US Dollar weakened across the board after the latest consumer inflation figures reaffirmed easing inflationary pressure and might have also dashed hopes for any additional Fed rate hike action by the end of this year. A sharp slide in the US Treasury bond yields also reinforced the expectations and further added to the greenback's woes.
• US: CPI for all urban consumers rose 0.1% in July on a seasonally adjusted basis
Meanwhile, the global flight to safety, amid escalating tensions between the US and N. Korea, continued benefitting the Japanese Yen's safe-haven appeal and further collaborated to the pair's slide to its lowest level since April 19-20, around the 108.70-80 region.
• US Pres. Trump: Military solutions are now fully in place, locked and loaded
Next on tap would be speeches by Dallas Fed President Kaplan and Minneapolis Fed President Kashkari, which would be looked upon for some immediate respite for the USD bulls.
Technical levels to watch
A follow through selling pressure has the potential to continue dragging the pair towards April monthly lows support near 108.15-10 zone before the pair eventually drops to its next support near the 107.80-75 region.
Meanwhile, on the upside, any recovery move back above the 109.00 handle might continue to face some fresh supply near 109.25 level, which if cleared might trigger a short-covering rally towards 109.55-60 intermediate hurdle en-route the key 110.00 psychological mark.
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