The USDJPY pair was trying to jump beyond the psychological level of 110,00 on Tuesday, but so far unsuccessfully and traders kept defending this major level.

Earlier in the day, traders focus on the US inflation numbers. The headline CPI rose 2.3% year-on-year (below the 2.4% expected), but above November's 2.1%. This was the highest reading since October 2018. Core CPI also rose 2.3% on a yearly basis (as expected). The month-on-month numbers disappointed somewhat. Rising inflation might lead to some repricing in the rate expectations for the year 2020. The USDJPY pair was still close to eight-month highs after the data.

From other news, investors remain optimistic as the trade deal is about to be signed tomorrow (Wednesday), while the US has already lifted the "currency manipulator" tag it gave China six months ago. 

Technically speaking, the pair is now fighting for the major threshold. If the price closes decisively above the 110.00 level, we could see further upside potential, with the next resistance in the 111.00 area. 

Alternatively, should investors start taking profits from the recent strong rally, a decline toward 109.70 might occur, where previous highs are located. This is the major support for the pair and as long as the greenback remains above it, the short-term outlook seems bullish.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD near daily lows with mixed US data

The EUR/USD pair continues trading just above the 1.1000 level, as US Durable Goods Orders rose by 2.4%, largely surpassing the market’s expectations, although core readings plummeted in the red.

EUR/USD News

GBP/USD below 1.3000 ahead of BOE

The dollar continues to advance against all of its major rivals, getting an additional boost from upbeat CB Consumer Confidence. GBP/USD trading around 1.2980. BOE to have a monetary policy meeting this Thursday.

GBP/USD News

Bitcoin moving on the razor edge

Yesterday's positive day along the crypto board has brought the BTC/USD pair to the borderline between a bearish market and a free space where it can grow again in search of new historical highs. 

Read more

WTI bounces off lows, back above $53.00/bbl

After hitting new lows in levels last seen in early October 2019 near $52.00, prices of the WTI have managed to regains some attention and have retaken the $53.00 mark per barrel.

Oil News

USD/JPY Forecast: Consolidating at lows, bearish

Coronavirus-related fears and upcoming first-tier event keeping investors in cautious mode. US Durable Goods Orders seen posting a tepid advance in December. USD/JPY at risk of resuming its decline once below 108.65.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures