US Dollar/Japanese Yen (USD/JPY): Pair Updates Local Highs
Current Trend
The USD/JPY pair continues to show a weak upward momentum formed at the end of last week, with a slight increase. It is currently attempting to break above 149.30, aiming to update the highs from early August. However, market activity is subdued due to Columbus Day in the US, with investors analyzing last weekend’s inflation data.
The core Consumer Price Index (CPI) for the US rose to 3.3% year-on-year, surpassing expectations, while the overall CPI slowed to 2.4%. The Producer Price Index (PPI decreased to 1.8%, but the core PPI accelerated to 2.8%. The Michigan Consumer Sentiment Index fell from 70.1 to 68.9, falling short of predictions.
Tomorrow at 01:50 (GMT+2), Japan’s industrial production data for August is set to be released, and it is expected to show a continued negative movement of -3.3% month-on-month. On Friday, the inflation data for September will be announced, with the nationwide Consumer Price Index (excluding fresh food) anticipated to slow from 2.8% to 2.3%, potentially weakening expectations for further monetary tightening by the Bank of Japan.
Support and Resistance
- Resistance Levels: 149.50, 150.50, 151.50, 152.50
- Support Levels: 148.24, 147.00, 146.00, 145.00
Trading Hints
- Buy Position: If the price breaks above 149.50, target 151.50 with a stop loss at 148.24. Duration: 2-3 days.
- Sell Position: If there is a rebound at 149.50 and the price falls below 148.24, target 146.00 with a stop loss at 149.50.
