|

USD/JPY undeterred by Japan's inflation figures, US PCE data from October looms

  • USD/JPY is trading near 149.00, with 0.30% losses recorded.
  • Japan's inflation figures from Friday showed no surprises. Kazuo Ueada hints at uncertainty regarding a potential policy tweak.
  • US Dollar braces for key PCE information from October, which will likely impact the pair’s trajectory.

In Monday's trading session, the USD/JPY pair is experiencing a downturn, anchored currently at the 148.90 mark. No relevant events were released during the session, and investors await the Personal Consumption Expenditures (PCE) figures from the United States for October to be released on Thursday. On the other hand, markets digest inflation figures from Japan released on Friday.
 
According to the National Consumer Price Index (CPI) for October, there was an increase in inflation by 3.3% compared to the same period last year, marking a rise from the 3.0% observed in September. However, regarding the National CPI figures that excludes Food and Energy, there was a slight decrease to 4.0% on a year-on-year basis, down from 4.2% in the previous measure. Meanwhile, the National CPI that excludes Fresh Food showed a marginal increase, moving up to 2.9% from the earlier figure of 2.8%.

Kazuo Ueda, who heads the Bank of Japan (BoJ), expressed a reserved outlook regarding Japan's ability to achieve its inflation target of 2.0%. He also advised caution regarding market expectations for a near-term change in the Bank of Japan's policies. In that sense, if the markets do not get any additional guidance on a potential policy tweak, the upside will be limited for the JPY. For the rest of the week, investors will closely watch Japan's Retail Trade data for further insights into the Japanese economic outlook.

On the USD side, the week’s highlight will be Gross Domestic Product (GDP) figures for Q3 and the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve (Fed) preferred gauge of inflation. Its worth noticing that the outcome of the PCE data will shape the short-term expectations of the bank, likely impacting the trajectory of the pair.


USD/JPY levels to watch

The indicators on the daily chart reflect a somewhat mixed picture. The Relative Strength Index (RSI) currently has a negative slope and resides in negative territory, suggesting selling momentum dominates, aligning the Moving Average Convergence Divergence (MACD), which prints its rising red bars.


That said, despite bears exerting downward pressure and the pair residing below the 20-day Simple Moving Average (SMA), the USD/JPY still stands firm above the crucial 100 and 200-day SMAs. This positioning indicates that the bulls still have the upper hand in the overall trend, suggesting that the buying momentum remains strong from a broader technical perspective.


Support Levels: 148.15, 147.00, 146.80 (100-day SMA).
Resistance Levels: 150.00, 150.20 (20-day SMA), 151.00.


USD/JPY daily chart

USD/JPY

Overview
Today last price148.88
Today Daily Change-0.59
Today Daily Change %-0.39
Today daily open149.47
 
Trends
Daily SMA20150.25
Daily SMA50149.63
Daily SMA100146.75
Daily SMA200141.77
 
Levels
Previous Daily High149.71
Previous Daily Low149.2
Previous Weekly High149.99
Previous Weekly Low147.16
Previous Monthly High151.72
Previous Monthly Low147.32
Daily Fibonacci 38.2%149.39
Daily Fibonacci 61.8%149.52
Daily Pivot Point S1149.21
Daily Pivot Point S2148.95
Daily Pivot Point S3148.69
Daily Pivot Point R1149.72
Daily Pivot Point R2149.98
Daily Pivot Point R3150.24

Author

Patricio Martín

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

More from Patricio Martín
Share:

Editor's Picks

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying
The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.
Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff
Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.