- USD/JPY is better bid amid losses in the Asian equities.
- The uptick could be associated with technical factors.
- An above-forecast US inflation could bode well for USD/JPY.
USD/JPY, which traded at lows near 105.00 in early Asian, rose to a session high of 105.58 a few minutes before press time despite the losses in the Asian equities.
As of writing, Japan's Nikkei is down 260 points or 1.26% and stocks in Australia, South Korea are reporting 0.32% and 0.60% losses, respectively.
Hong Kong's Hang Seng index is currently shedding 372 points or 1.44%. Violent protests are dragging Hong Kong "to the brink of no return," the city's leader warned earlier today.
Even so, the anti-risk Japanese Yen has come under pressure in the last couple of hours. The uptick in the USD/JPY could be associated with the developments on the technical charts. Notably, the hourly chart was reporting a bullish divergence of the widely followed relative strength index earlier today. A bullish divergence is considered a sign of seller exhaustion.
Also, the 0.23% rise in the S&P 500 futures could be helping USD/JPY chart gains.
Focus on US CPI
The US inflation, as represented by the consumer price index (CPI), is forecast to rise 0.3% month-on-month in July, following a 0.1% rise in June. The core CPI is seen printing at 0.2%.
"An acceleration to 2.2% or higher would boost the greenback while a miss of 2% or lower may send it lower"
- R3 106.3
- R2 106
- R1 105.65
- PP 105.35
- S1 105
- S2 104.7
- S3 104.35
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