The USD/JPY rose some 0.37% early in the North American session as traders digested the release of November US Consumer Price Index (CPI) figures, which came as expected by the consensus. At the time of writing, the pair trades volatile at around 152.50.
The US Bureau of Labor Statistics (BLS) revealed that headline CPI was 0.3% MoM, a tenth high, but aligned with estimates of 0.2%. Core CPI was unchanged at 0.3% MoM, which was aligned with projections for October and Wall Street.
In the twelve months to November, CPI was up from 2.6% to 2.7%, while core CPI was unchanged compared to October, as projected by the consensus at 3.3%.
After the data, the USD/JPY resumed to the upside, while the US 10-year Treasury note yield, pared its earlier gains, stands at 4.226% flat.
November’s CPI has increased the chances of the Fed cutting interest rates another 25 basis points (bps), with odds standing at 84%, according to the CME FedWatch Tool.
Source: Prime Market Terminal (PMT)
Michael Brown of Pepperstone says the figures shouldn’t deter the FOMC from a quarter-point cut next Wednesday.
This week, the US economic docket will feature the release of the Producer Price Index (PPI) along with Initial Jobless Claims figures for the week ending December 7.
The USD/JPY daily chart suggests that bulls are facing stir resistance at the Kijun-Sen at 152.69, failing to gain traction, which could witness the pair rallying toward the November 20 high of 155.89, ahead of the 156.75 daily peak of November 15. However, the pair has been carving successive series of lower highs and lower lows, and unless bulls clear the Kijun-Sen, sellers could drive prices inside the Ichimoku Cloud.
On further weakness, the USD/JPY could drop below 152.00 and extend its losses toward the 100-day Simple Moving Average (SMA) at 148.65.
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Australian Dollar.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.09% | -0.06% | 0.20% | -0.07% | 0.06% | -0.02% | -0.19% | |
EUR | 0.09% | 0.03% | 0.24% | 0.01% | 0.15% | 0.06% | -0.11% | |
GBP | 0.06% | -0.03% | 0.19% | -0.02% | 0.12% | 0.03% | -0.13% | |
JPY | -0.20% | -0.24% | -0.19% | -0.22% | -0.07% | -0.17% | -0.33% | |
CAD | 0.07% | -0.01% | 0.02% | 0.22% | 0.14% | 0.05% | -0.12% | |
AUD | -0.06% | -0.15% | -0.12% | 0.07% | -0.14% | -0.09% | -0.25% | |
NZD | 0.02% | -0.06% | -0.03% | 0.17% | -0.05% | 0.09% | -0.16% | |
CHF | 0.19% | 0.11% | 0.13% | 0.33% | 0.12% | 0.25% | 0.16% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
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