- USD/JPY takes a dive just before in Tokyo.
- USD/JPY making fresh lows post the CPI data and reatail sales being digested in Japan.
Currently, USD/JPY is trading at 106.67, down -0.26% on the day, having posted a daily high at 107.06 and low at 106.42.
The yen was a top performer by the close of play in NY overnight. USD/JPY fell below the 2017 low of 107.32 but was still holding above the 61.8% of 99-118.66 rise at 106.51. this all came with the yen picking up the safe haven bid despite a turn around in stock prices. (Both the S&P and Dow broke up back to test their 200 hourly SMA's and on to test the 10-D SMA's, despite a jump in Treasury yields).
CPI and retails sales send dollar off a cliff
The CPI data combined with a poor retail sales was leading to terrible downgrades to the GDP trackers, (The Atlanta Fed model is now at 3.2% from 5.4% two weeks ago) and the dollar took a beating. Despite higher US yields, with the 10-year note yield moving within a range of between 2.8059% - 2.9095% (the high scored by end of the day post-CPI data ) and after opening at 2.8312%, the DXY was down over -0.60% within a day's range of 89.057 - 90.124.
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the pair is further below its 100 and 200 SMAs, both accelerating their declines, while technical indicators consolidate near oversold readings, with no clear directional strength. Renewed selling pressure below 106.80 should open doors for a steeper decline toward the 106.00 region during the upcoming sessions.
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.