USD/JPY trades with modest gains, eyes 110.70 ahead of US CPI

USD/JPY continues to ride higher the fifth straight day on Wednesday.
US Dollar Index remains in demand above 93.00 on Fed’s official’s hawkish comments, US infrastructure bill.
The yen losses attractiveness as a record case of delta variant reported in Japan.

Rekha Chauhan Independent Analyst

USD/JPY extends gains in the initial Asian trading session on Wednesday. The strong buying pressure in the US dollar sponsors the performance of the pair.

At the time of writing, USD/JPY is trading at 110.57, up 0.01 % for the day.

The US Dollar Index, which tracks the performance of the greenback against its six major rivals, trades above 93.00 with 0.15% gains tracing the higher US Treasury yields.

The US 10-year benchmark Treasury yields jumped to 1.35% on the growing expectations of sooner-than-expected US Federal Reserve threshold of timing to reduce its monthly bond-purchasing program.

Meanwhile, Chicago Fed President Charles Evan said he would wait for more job reports before taper decision. His comments were diverging from other Fed official’s hawkish stance.

In the latest development, US Senate passed the massive $1 trillion infrastructure plan, further adding to the optimism surrounding the greenback.

The number of Americans filing new claims for unemployment benefits declined to 385k in July, broadly in line with market estimates of 384K whereas the US posted the largest trade deficit on record in June at

On the other hand, the Japanese yen remained weaker against the greenback as the number of new coronavirus cases reported continued to recorded above 10k.

Meanwhile, Japan’s bank lending edged higher in July at the slowest annual pace in the last nine years.

As for now, investors wait for the US Core Inflation Rate and Inflation Rate to gauge the market sentiment.

A higher reading would strengthen the prospects of early Fed tapering, which could boost the US dollar appeal as an attractive investment.

USD/JPY additional levels

USD/JPY

Overview
Today last price	110.58
Today Daily Change	0.28
Today Daily Change %	0.25
Today daily open	110.3

Trends
Daily SMA20	109.91
Daily SMA50	110.13
Daily SMA100	109.64
Daily SMA200	107.29

Levels
Previous Daily High	110.35
Previous Daily Low	110.03
Previous Weekly High	110.36
Previous Weekly Low	108.72
Previous Monthly High	111.66
Previous Monthly Low	109.06
Daily Fibonacci 38.2%	110.23
Daily Fibonacci 61.8%	110.15
Daily Pivot Point S1	110.1
Daily Pivot Point S2	109.9
Daily Pivot Point S3	109.77
Daily Pivot Point R1	110.42
Daily Pivot Point R2	110.55
Daily Pivot Point R3	110.75

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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