USD/JPY struggles to sustain above mid-108.00s, trades with modest losses
|- The pair struggled to build on the overnight recovery led by hotter-than-expected US core CPI.
- The USD fails to attract any buying interest despite a follow-through uptick in the US bond yields.
- Friday’s US PPI print for June and comments by FOMC member Evans now eyed for some impetus.
The USD/JPY pair failed to capitalize on the overnight goodish bounce from weekly lows and met with some fresh supply on the last trading day of the week.
Thursday's hotter-than-expected US core CPI figures showed signs of a pick-up in the underlying inflation and tempered expectations for an aggressive Fed rate cut. The data provided helped the US Dollar to regain traction and prompted some short-covering move around the major.
The pair rallied around 70-pips from an intraday low level of 107.86 but struggled to sustain/built on the momentum further beyond mid-108.00s amid some renewed USD selling bias during the Asian session on Friday, despite a follow-through pickup in the US Treasury bond yields.
Meanwhile, the downtick seemed rather unaffected by Friday's mixed Japanese industrial production data that showed a slight deceleration to 2.2% in May, with the yearly rate unexpectedly contracting by 2.1%, though was largely offset by a jump in the capacity utilization figures.
Moving ahead, Friday's US economic docket features the release of producer price index (PPI) for June, which coupled with comments by Chicago Fed President Charles Evans, will now be looked upon for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
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