USD/JPY at 14-month lows, pushing lower on US Dollar weakness

  • USD/JPY continues to decline in a Dollar-bear environment.
  • US CPI figures weighing down the Greenback.

USD/JPY is trading lower but choppy with thinning volumes heading into the European markets, with the pair playing close to 106.40.

The US Dollar dump continued yesterday following a positive beat to US inflation data, with the month-over-month CPI printing an expectation thumping 0.5% increase for January. With strength behind the Japanese Yen continuing to grow, USD/JPY broke through a key barrier to trade at 14-month lows.

USD/JPY Technicals

With the pair closing lower for six of the past eight trading days and the USD selling off steadily, USD/JPY has cleared every major support level and is now poised for freefall unless confidence in the Greenback suddenly returns or the Bank of Japan can successfully talk the markets out of buying the Yen. Daily candles have Fibo retracement levels at 107.90 (38.2) and 108.88 (61.8) if a reversal is priced in around this area, while a continuation of the selloff will see the pair trading into the consolidation established in the third quarter of 2016.

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.