- US dollar tumbles across the board on the worst day in months.
- Inflation numbers trigger a rally in Treasuries.
- USD/JPY looks for another test at the 100-day SMA.
The USD/JPY collapsed following the release of US inflation data. The numbers triggered a sell-off of the US dollar across the board, pushing the pair toward 132.00
Before the release of the US CPI, USD/JPY was trading near 135.00. Recently it bottomed at 132.00. The pair is back into negative territory for August. Below 132.00, attention would turn to the 100-day Simple Moving Average at 131.05/10. The mentioned SMA capped the downside a week ago.
The move lower took place amid a broad-based decline of the dollar that is still going on. The DXY is falling more than 1.50%, as it trades under 104.70. The US 10-year yield is at 2.74%, after bottoming at 2.67%.
Lower yields, risk appetite and expectations of a less aggressive Federal Reserve weighed on the USD/JPY. The annual US CPI rate dropped from 9.1% to 8.5%, against the market consensus of 8.7%. Analysts at Commerzbank, pointed out that inflation has probably passed its peak. “However, the collapse in the price of gasoline played a decisive role. The further decline in the inflation rate is therefore likely to be slow.”
|Today last price||132.1|
|Today Daily Change||-2.92|
|Today Daily Change %||-2.16|
|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|
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