Usd/jpy rises 0.94% to 151.22 as traders await us inflation data

USDJPY Analysis

Performance after Monday
Period	Pct	Chg	Momentum
Monday	0.94%	141 Pips
Week to-date	0.84%	126.701 Pips
December	0.04%	6.4 Pips

Upcoming key events (London Time)

Wed 01:30 PM USD CPI Inflation Rate (12-mth)

What happened lately

On Monday, the USDJPY exchange rate experienced a significant rise of 0.94%, reaching a rate of 151.22. This movement occurred without the influence of major economic news from the United States, which indicates that the fluctuations could have been driven by market sentiment, technical factors, or developments in other sectors of the financial markets. The absence of substantial economic indicators on that day may suggest that traders are potentially reacting to expectations or positioning ahead of upcoming significant economic events.

A notable event on the horizon is the release of the U.S. Consumer Price Index (CPI) Inflation Rate data, which is scheduled for Wednesday at 01:30 PM. This piece of economic data is considered highly impactful as it provides insight into inflationary pressures in the economy. The inflation rate is a critical indicator that the Federal Reserve closely monitors in its decision-making process regarding interest rates. A higher-than-expected inflation reading could signal to investors that the Federal Reserve might consider further tightening of its monetary policy, which would generally be supportive of the U.S. dollar.

As for the effect on the USDJPY pair, the movements are often closely tied to the differential in monetary policy expectations between the United States and Japan. If the CPI data reveals inflation running hotter than anticipated, it could bolster the U.S. dollar, pushing the USDJPY higher as investors anticipate tighter monetary policy by the Federal Reserve. Conversely, if the CPI reveals a cooler inflation environment or is in line with expectations, the impact on the USDJPY might be more muted, potentially even leading to some profit-taking or adjustments in trader positions. Thus, the upcoming CPI data is likely to play a pivotal role in guiding the USDJPY’s short-term trajectory, with investors keenly awaiting the release for further signals on economic conditions and potential policy responses. The market’s focus will remain on how these factors influence the relative strength between the U.S. dollar and the Japanese yen.

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What can we expect from USDJPY today?

USDJPY on Monday rose 0.94% to 151.22. Price is above 9-Day EMA while Stochastic is rising.

Updated daily direction for USDJPY looks bullish as the pair ended higher after Monday trading session.

Looking ahead for the day, immediate upside resistance level is R1 at 151.82 with break above could target R2 at 152.41. While towards the downside, we are looking at daily low of 149.68 as an important support. Break below this level could weaken the current bullish momentum. A break above 151.35 would suggest bullish bias after recent positive movement.

For the week to-date, take note that USDJPY is bullish as the pair continued to trade higher and is up by 0.84% over the past few days.

Key levels to watch out: