USD/JPY stays in consolidation channel above 106.00 after US data

USD/JPY pair is trading in an extremely tight range on Friday.
US Dollar Index recovered modestly in the last hour.
Core inflation in US rose more than expected in August.

Eren Sengezer FXStreet

The USD/JPY pair is fluctuating in a very tight 20-pip range on Friday and struggling to make a decisive move in either direction. As of writing, the pair was virtually unchanged on the day at 106.15.

Eyes on Wall Street

The data published by the US Bureau of Labor Statistics showed that the Core Consumer Price Index (CPI), which excludes volatile energy and food prices, edged higher to 1.7% in August from 1.6% in July. With the initial market reaction, the US Dollar Index (DXY) rebounded modestly from session lows. At the moment, the DXY is still down 0.15% on the day at 93.22.

On the other hand, the S&P 500 futures, which rose as much as 1% earlier in the day, erased a portion of its gains and helped the safe-haven JPY stay resilient against the USD. Additionally, the 10-year US Treasury bond yield is down 0.7% on the day, making it difficult for the pair to turn north. Nevertheless, Wall Street's main indexes remain on track to start the day in the positive territory and USD/JPY could gain traction if risk flows start to dominate the markets in the second half of the day.

Later in the day, the US Department of Treasury will publish its Monthly Budget Statement for August but the market reaction is likely to be muted.

Technical levels to watch for

USD/JPY

Overview
Today last price	106.16
Today Daily Change	0.03
Today Daily Change %	0.03
Today daily open	106.13

Trends
Daily SMA20	106.05
Daily SMA50	106.32
Daily SMA100	106.85
Daily SMA200	107.85

Levels
Previous Daily High	106.3
Previous Daily Low	105.98
Previous Weekly High	106.55
Previous Weekly Low	105.29
Previous Monthly High	107.05
Previous Monthly Low	105.1
Daily Fibonacci 38.2%	106.11
Daily Fibonacci 61.8%	106.18
Daily Pivot Point S1	105.98
Daily Pivot Point S2	105.82
Daily Pivot Point S3	105.66
Daily Pivot Point R1	106.3
Daily Pivot Point R2	106.46
Daily Pivot Point R3	106.62

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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