USD/JPY holds steady above mid-108.00s, moves little post-US CPI
|- USD/JPY struggled to capitalize on its intraday positive move amid a modest USD pullback.
- Mixed US consumer inflation figures did little to impress traders or provide any impetus.
The USD/JPY pair retreated around 45-50 pips from intraday highs and was last seen hovering near the lower boundary of its daily trading range, around mid-108.00s.
A combination of supporting factors assisted the pair to regain some positive traction on Wednesday and reverse the previous day's modest losses. The safe-haven Japanese yen was weighed down by the underlying bullish sentiment in the financial markets. Apart from this, renewed US dollar buying interest provided a modest lift to the USD/JPY pair.
The USD, however, struggled to capitalize on the intraday positive move and largely shrugged off a modest pickup in the US Treasury bond yields. The intraday USD pullback picked up pace in reaction to mixed US consumer inflation figures. The headline CPI rose 0.4% in February, while core CPI missed estimates and edged up 0.1% during the reported month.
The data, though showed a steady rise in the cost of living, did little to impress the USD bulls or provide any meaningful impetus to the USD/JPY pair. That said, the market reaction, so far, has turned out to be muted as investors preferred to wait on the sidelines ahead of a critical ten-year bond-auction in the US later during the American session.
With Wednesday's key data out of the way, the broader market risk sentiment will influence the safe-haven JPY and allow traders to grab some short-term opportunities.
Technical levels to watch
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