USD/JPY slides to fresh session lows, around mid-107.00s post-US CPI
|- Reviving safe-haven demand led to the initial leg of pullback from 100-DMA.
- Bears further took cues from a sharp intraday slide in the US bond yields.
- Mixed US CPI figures did little to influence the price action or provide any respite.
The USD/JPY pair extended its steady intraday pullback from multi-week tops and dropped to fresh session lows, around mid-107.00s post-US CPI.
Despite the recent encouraging trade-developments, reviving safe-haven demand provided a goodish lift to the Japanese Yen and turned out to be one of the key factors behind the pair's rejection slide from the 100-day SMA barrier. The pair continued losing ground through the early North-American session and seemed rather unaffected by some renewed US Dollar strength, primarily led by the post-ECB slump in the shared currency.
Fed rate cut bets intact post-US CPI
On the economic data front, mixed US consumer inflation figures did little to influence the price action or provide any meaningful impetus to the major. The headline US CPI rose 1.7% on yearly basis as compared to 1.8% expected while core CPI - excluding food and energy costs - bettered consensus estimates and came in at 2.4% (2.3% anticipated), up from 2.2% recorded in the previous month.
The data did little to temper expectations that the Fed will cut interest rates further at its upcoming meeting on September 17-18 and kept exerting downward pressure on the major, with bearish traders further taking cues from a fresh leg of a sharp downfall in the US Treasury bond yields.
It will now be interesting to see if the pair is able to find any buying interest at lower levels or the current leg of a downfall marks the resumption of the prior/well-established bearish trend. Market participants now look forward to the ECB President Mario Draghi's comments at the post-meeting press conference for a fresh impetus.
Technical levels to watch
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.