- USD/JPY is witnessing a balanced profile above 135.00 as pre-inflation anxiety hit risk-impulse.
- The plain-vanilla US CPI may slip to 8.7% whereas the core CPI is expected to advance to 6.1%.
- Japan’s cabinets re-shuffle to keep the yen bulls on the tenterhooks.
The USD/JPY pair is walking northwards briskly to recapture its two-week high at 135.58 in the Asian session. The asset has turned positive after finding significant bids around 134.50 on Monday. The two-day consolidated movement in the USD/JPY pair clearly indicates that the market participants are awaiting the release of the US Consumer Price Index (CPI) having sky-rocketing anxiety.
This time, the event of the US inflation release holds significant importance as investors are betting on a downward shift in the price pressures. The investing community is aware of the fact that the Russia-Ukraine tussle escalated the oil prices abruptly, which remained critical to higher cost pressures in the global economy.
The black gold has remained vulnerable in July and a more than 11% decline in oil prices has trimmed the inflation forecasts. As per the market consensus, the inflation rate will skid to 8.7% from the prior release of 9.1%. However, the core CPI that doesn’t inculcate oil and food products in the calculation is seen higher at 6.1% vs. 5.9% released earlier. Well, it looks like the demand for durable goods is rebounding sharply. Meanwhile, the US dollar index (DXY) is aiming to cross the immediate hurdle of 106.40.
On the Tokyo front, the yen bulls are dancing to the tunes of Japan’s cabinet re-shuffle. Japanese Prime Minister Fumio Kishida is set to retain Finance Minister Shunichi Suzuki in a cabinet reshuffle this week. Now, eyes will remain on measures to be taken by the Japanese administration to step up the labor cost index, which is critical to keep the inflation rate above 2%.
|Today last price||135.16|
|Today Daily Change||0.14|
|Today Daily Change %||0.10|
|Today daily open||135.02|
|Previous Daily High||135.2|
|Previous Daily Low||134.67|
|Previous Weekly High||135.5|
|Previous Weekly Low||130.4|
|Previous Monthly High||139.39|
|Previous Monthly Low||132.5|
|Daily Fibonacci 38.2%||135|
|Daily Fibonacci 61.8%||134.87|
|Daily Pivot Point S1||134.72|
|Daily Pivot Point S2||134.43|
|Daily Pivot Point S3||134.19|
|Daily Pivot Point R1||135.26|
|Daily Pivot Point R2||135.5|
|Daily Pivot Point R3||135.79|
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.