USDJPY eyse 11100 on yields rally


Japan CPI slowed to a 0.6% y/y pace in April from the 1.1% clip in March. The core CPI moderated to a 0.7% y/y pace from the 0.9% growth rate in March. The extent of the slowing in both measures was slightly more pronounced than anticipated. In the April meeting, the BoJ eliminated the timeframe to achieve CPI target. Among the core central banks, the BoJ is firmly poised to be “low for longest.” Recent data is supportive of that projection, notably the drop in Q1 CPI and slowing in April core CPI. USDJPY has extended gains to 110.99, the firmest levels since late January. The pair saw a year low of 104.735 in late March, and has been on the rise since.

The H1 time-frame generated a cross in the 5 and 9 EMA, a rise into the top half of the Bollinger band and a break of recent Fractal highs on the close of the 09:00 candle yesterday at 110.44. The trend remains well established with support currently at 110.78 and the Bollinger band mid line.


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