USD/JPY catches a lift into 149.10 heading into Thursday

USD/JPY caught a light bid back above the 149.00 handle on Wednesday, but momentum remains thin.
US PPI, FOMC minutes failed to spark a meaningful drive in the US Dollar as investors await Thursday's CPI release.
Inflation data to remain the key driver for markets heading into the back half of the trading week.

Joshua Gibson FXStreet

The USD/JPY reclaimed the 149.00 handle once again in Wednesday trading, and now heads into Thursday's market session looking to hold onto the major level with thin Japan data on the offering for the Asia market window and investors bracing for a fresh printing of US Consumer Price Index (CPI) inflation figures later in the day.

The US Dollar (USD) kicked off Wednesday trading near 148.60, tapping in an early intraday low of 148.42 before recovering steadily throughout the midweek market session, setting a near-term high of 149.32 before settling back into the 149.00 handle.

US Producer Price Index figures broadly beat market expectations, and the Federal Reserve's (Fed) latest meeting minutes release did little to ignite interest in firm USD bidding in either direction.

Forex Today: Dollar remains weak despite PPI and FOMC Minutes, CPI Next

Japan's Producer Price Index (PPI) and Machinery Orders are due at the top of Thursday's trading, but market impact is likely to remain muted.

Japan's PPI for September is forecast to tick down slightly from 0.3% to 0.1%, while Machinery Orders for August are seen rebounding to 0.4% from the previous month's -1.1%.

US CPI inflation figures will be the big showdown for Thursday, and markets are expecting the headline annualized CPI reading for September to edge lower from 3.7% to 3.6%. Inflation expectations are mixing poorly with rising odds of a recession in the US domestic economy in the coming months, and a significant beat for the US CPI will see investors dog-piling back into the US Dollar in short order.

USD/JPY Technical Outlook

The Dollar is up 0.6% against the Yen from the week's low bids, but intraday price action is finding itself hung up along the 200-hour Simple Moving Average (SMA), and the figure to beat for short-term bidders will be last week's peak just beneath 149.60.

The USD/JPY remains firmly entrenched in bullish territory on the longer timeframes, with daily candlesticks still well-supported by the 50-day SMA near 147.00 and the 200-day SMA trading far below current prices, twisting bullish into the 139.00 handle.

USD/JPY Daily Chart

USD/JPY Technical Levels

USD/JPY

Overview
Today last price	149.08
Today Daily Change	0.37
Today Daily Change %	0.25
Today daily open	148.71

Trends
Daily SMA20	148.59
Daily SMA50	146.76
Daily SMA100	143.94
Daily SMA200	138.62

Levels
Previous Daily High	149.1
Previous Daily Low	148.16
Previous Weekly High	150.16
Previous Weekly Low	147.32
Previous Monthly High	149.71
Previous Monthly Low	144.44
Daily Fibonacci 38.2%	148.74
Daily Fibonacci 61.8%	148.52
Daily Pivot Point S1	148.22
Daily Pivot Point S2	147.72
Daily Pivot Point S3	147.28
Daily Pivot Point R1	149.15
Daily Pivot Point R2	149.59
Daily Pivot Point R3	150.09

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.