• USD/JPY dips following February's Core PCE data, indicating a gradual cooling of inflation but concerns linger.
  • Fed officials maintain a cautious outlook on rate cuts, awaiting further evidence of sustained disinflationary trends.
  • Market awaits insights from Fed Chair Powell and other Fed speakers.

The USD/JPY posts  minuscule losses following the release of the US Core Personal Consumption Expenditure (PCE) price index, the US Federal Reserve’s preferred inflation gauge. Data came as expected with prices continuing to trend lower, though at a slower pace. The major trades at 151.25, down 0.09%.

USD/JPY reacts modestly to the latest US economic indicators

The US Bureau of Economic Analysis (BEA) revealed that the Core PCE was lower than expected in February, coming at 0.3% MoM, below the previous month’s data. Yearly data cooled from 2.9% to 2.8%, as estimated by the consensus. Headline inflation came at 0.3% below January’s forecasts, and in the 12 months to February, it was higher than the previous month at 2.5%, up from 2.4%.

Although the data relieves pressure on the Federal Reserve, policymakers continue to take a cautious stance. Other inflationary readings, such as the Consumer Price Index (CPI) and the Producer Price Index (PPI), show signs that inflation is becoming entrenched above the 3% threshold.

On Wednesday, Fed Governor Christopher Waller was hawkish, saying the US central bank is in no rush to cut rates. Later, San Francisco Fed President Mary Daly and Fed Chair Jerome Powell would cross newswires, with traders eyeing their comments.

Even though the disinflationary process is evolving, the labor market is re-tightening again, following four consecutive weeks of fewer Americans filing for unemployment benefits. That can increase spending, which consequently could push prices higher.

Wells Fargo analysts cited by Bloomberg noted “We really just haven’t seen that consumer fatigue that we were getting some hints of in the last month’s data, …. That’s going to make it really hard, I think, for businesses to hold the line on prices if consumers are still willing to splash out at these levels.”

USD/JPY Price Analysis: Technical outlook

The daily chart portras the pair consolidated at around the 151.15/151.60 area, unable to gather tration in eigher way, as Japanese authorities threatened to intervene in the markets. Nevertheless, if the USD/JPY pushes above 152.00, that an clear the path to challenge 153.00. On the flip side, buyers failure to hold prices above 152.00 and 151.00, could sponsor a leg down. The first support would be the Tenkan Sen at 150.49, followed by the Senkou Span A at 149.86.

USD/JPY

Overview
Today last price 151.21
Today Daily Change -0.17
Today Daily Change % -0.11
Today daily open 151.38
 
Trends
Daily SMA20 149.74
Daily SMA50 149.34
Daily SMA100 147.6
Daily SMA200 146.84
 
Levels
Previous Daily High 151.54
Previous Daily Low 151.15
Previous Weekly High 151.86
Previous Weekly Low 148.91
Previous Monthly High 150.89
Previous Monthly Low 145.9
Daily Fibonacci 38.2% 151.39
Daily Fibonacci 61.8% 151.3
Daily Pivot Point S1 151.17
Daily Pivot Point S2 150.96
Daily Pivot Point S3 150.78
Daily Pivot Point R1 151.57
Daily Pivot Point R2 151.75
Daily Pivot Point R3 151.96

 

 

Share: Feed news

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD treads water near 1.0860 as markets gear up for another week of Fed-watching

EUR/USD treads water near 1.0860 as markets gear up for another week of Fed-watching

EUR/USD found little momentum on Monday, cycling near 1.0860 after US markets were dark for the holiday long weekend. Tuesday will kick off the Fiber’s trading week in earnest after German sentiment surveys hobbled the Euro on Monday.

EUR/USD News

GBP/USD consolidates its upside above 1.2750, investors await fresh catalysts

GBP/USD consolidates its upside above 1.2750, investors await fresh catalysts

GBP/USD consolidates its upside around 1.2770 after reaching two-month highs during the early Tuesday. The USD Index remains under some selling pressure at around 104.60, which provides some support to the major pair.

GBP/USD News

Gold price rebounds on weaker US Dollar, investors await US key data

Gold price rebounds on weaker US Dollar, investors await US key data

Gold price edges higher on Tuesday after bouncing off two-week lows of $2,325. The uptick of yellow metal is bolstered by the softer US Dollar and safe-haven flows amid the ongoing geopolitical tensions in the Middle East. 

Gold News

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum investors confident of rally as ETH developers schedule Pectra upgrade for Q1 2025

Ethereum gained nearly 3% on Monday as investors exhibited high bullish sentiment. Michael Saylor also commented on the recent spot ETH ETF approval by the Securities & Exchange Commission.

Read more

Trading the week ahead

Trading the week ahead

This week is set to be a relatively quiet week. On Tuesday, US consumer confidence figures will be released. Given the context of recent firmer US PMI data and hawkish FOMC minutes, a stronger consumer confidence report could reinforce dollar strength. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures