USD/JPY outlook: Slumps after weaker than expected US CPI data

Slobodan Drvenica Windsor Brokers

USD/JPY

USDJPY fell sharply after surprise drop in US inflation, falling 2.6% in immediate reaction to data and being one of top losers on Thursday.

US CPI data did the job for Japan’s authorities by sending yen sharply higher without an intervention.

The USDJPY price fell to the lowest in three weeks, in a biggest daily loss since May 1, retracing so fat over 38.2% of 151.85/161.95 upleg, with close below cracked Fibo support (158.09) needed to reinforce fresh and strong bearish signal.

Upticks should be capped under 20DMA / psychological (160.00) to keep fresh bears intact for further decline and test of next targets at 156.90 and 155.71 (Fibo 50% and 61.8% respectively).

Res: 159.56; 160.00; 160.97; 161.75.

Sup: 158.09; 157.51; 156.90; 155.71.

Interested in USD/JPY technicals? Check out the key levels

1. R3 165.59
2. R2 163.67
3. R1 161.26
PP 159.34
1. S1 156.93
2. S2 155.01
3. S3 152.6

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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