USD/JPY probes 108.50 following Japan CPI, BOJ minutes
- USD/JPY accelerates the latest run-up, nears the highest in three weeks.
- Japan’s National Consumer Price Index came in below expectations, BOJ minutes favors further easing.
- Coronavirus continues to spread, ECB announced a huge package, the US bill awaited.
Following the latest downbeat catalysts from Japan, USD/PY registers three-day winning streak, currently near 108.50, as the Tokyo session open for Thursday.
Japan’s National Consumer Price Index (CPI) came in below 0.8% forecast On MoM to 0.4% whereas the CPI ex Food, Energy (YoY) slipped beneath 0.9% expectations to 0.6% for February.
Read: Japan CPI (YoY) Feb 0.4% (est 0.5%; prev 0.7%)
The US dollar cheers broad strength amid the rush to hoard during major stimulus from the global central banks/governments, the ECB being the latest one. That said, weak data from Japan added strength into the USD/JPY to extend the previous run-up that probed three-week high the previous day.
Just after the data, the BOJ minutes for the January month meeting offered additional support for the Japanese central bank’s Quantitative Easing (QE). As a result, the Japanese yen got another burden to bear, as the Japanese press pushes for government stimulus, which in turn offered additional fuel to the USD/JPY pair.
Read: BoJ Minutes: Appropriate to persistently continue with the current powerful monetary easing
Given the most data/events from Japan already out and loud, investors will keep eyes on the coronavirus headlines as well as the global efforts to tame the pandemic. It should also be noted that the fears of the deadly virus continue to weigh on the markets’ risk-tone but the US equity futures have recovered off-late following the ECB’s announcement.
Technical Analysis
Only if the pair registers a daily closing below October 2019 bottom surrounding 106.50 can it recall the bears otherwise odds of its further rise to a late-January low near 109.30 seem brighter.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
