USDJPY Technical Analysis | Forexlive
On the daily chart below for
USDJPY, we can see that after the big selloff after the miss in US Job
Openings, the price bounced from the 135 handle and the red long period moving
average. The strong NFP report last Friday gave the USD
a boost as Treasury yields rose due to some fear of persistently high inflation.
The price has been moving pretty
sideways since then as the market awaits the US CPI report today to decide where to
go next. The market is still pricing a Fed pause in June and rate cuts
starting in September, so today’s CPI is important because a hot reading
can cause a repricing and a big rally.
On the 4 hour chart below, we can
see that the pair has been trading within a rising channel into the 138 handle.
The price is now consolidating near the lower bound of the channel as the
market awaits the CPI report.
The moving averages have crossed
to the upside so the bias is bullish, but the next move will be decided by the
data anyway. In case we get higher than expected data, we should see the
pair rally and the 138 handle being again the target. On the other hand, a miss
to the expectations should make the pair to fall with the 133 handle being the
first target.
On the 1 hour chart below, we can
see that since the NFP report the price has just been ranging around the 135
handle although with a bullish tilt. This is a clear sign of indecision trading
into a big risk event. Watch out for the data today!