- The USD/JPY is slipping into a seven-week low as the Yen recovery extends.
- Japan Tokyo Inflation figures due later in the week, could put a kink in Yen rally.
- USD/JPY set for its third straight down day as markets sell Greenback, bid Yen.
The USD/JPY is seeing further declines on Monday, with the Japanese Yen (JPY) gaining over a full percent against the US Dollar (USD). The pair has backslid from the 150.00 handle and is currently aimed at the sub-148.00 chartspace.
USD/JPY: Targeting a drop to around 146.25 in the next 1-2 weeks – Scotiabank
Overall declines in the US Dollar's speculative position are exacerbating the Yen's recovery from multi-year lows, and the trick for Yen bulls will be to keep the JPY on track through Japanese inflation figures due later this week, slated for early Friday.
Friday's Japan National Consumer Price Index (CPI) inflation reading is expected to show a slight improvement in core CPI (CPI less volatile fresh food prices), with the annualized figure forecast to tick up from 2.8% to 3.0%.
The Bank of Japan (BoJ) has been trapped in an incredibly dovish stance as of late, which helped to fuel the Yen to some of its lowest bids in fifteen years against some of the other major currencies. An upbeat inflation number would be a saving grace for the BoJ which is hoping some of their extraordinary policy measures will help keep the Japanese economy from slipping back into long-term deflation.
Japanese Yen price today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Canadian Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.33% | -0.34% | 0.11% | -0.55% | -1.06% | -0.41% | -0.19% | |
| EUR | 0.33% | -0.03% | 0.44% | -0.22% | -0.73% | -0.08% | 0.13% | |
| GBP | 0.34% | 0.03% | 0.47% | -0.19% | -0.70% | -0.06% | 0.16% | |
| CAD | -0.12% | -0.44% | -0.46% | -0.66% | -1.18% | -0.53% | -0.31% | |
| AUD | 0.54% | 0.22% | 0.21% | 0.66% | -0.51% | 0.13% | 0.35% | |
| JPY | 1.06% | 0.72% | 0.48% | 1.18% | 0.51% | 0.65% | 0.87% | |
| NZD | 0.42% | 0.09% | 0.07% | 0.53% | -0.13% | -0.65% | 0.24% | |
| CHF | 0.20% | -0.13% | -0.14% | 0.31% | -0.35% | -0.87% | -0.21% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
USD/JPY Technical Outlook
The USD/JPY is set for its third straight loss day, accelerating declines as the pair falls below the 50-day Simple Moving Average (SMA) for the first time since late July, when the pair was trading near 141.00.
With Monday set for a close in the red, the USD/JPY will have closed down for four of the last five trading days, and the pair has declined over 2.5% from last week's early peak at 151.91.
Despite the near-term downside, the USD/JPY remains firmly well-bid, and is still trading well above the 200-day SMA, which is miles away from current price action, pushing up into 142.00.
USD/JPY Daily Chart
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