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16 Sep 2015
USD/JPY retreats from highs after US CPI
FXStreet (Córdoba) - USD/JPY pulled back slightly from daily highs after data showed US consumer prices drop in August.
US consumer price index fell 0.1% in August, the Labor Department said Wednesday, missing expectations of a flat reading and down from a 0.1% increase in July. Excluding volatile food and energy components, so-called core CPI rose 0.1%, in line with median forecast. From a year earlier, CPI grew 0.2% in August (0.2% exp.) and core prices rose 1.8% (1.9% exp.).
The dollar weakened slightly on the back of soft inflation data as investors await the Fed verdict on Thursday. While the employment sector has shown signs of improvement, inflation remains subdued and well below the central bank’s target, which could delay the liftoff.
USD/JPY key levels
USD/JPY is currently trading at 120.55, still up 0.12% on the day. As for technical levels, immediate resistances could be found at 120.68 (Sep 16 high), 120.80/83 (200-day SMA/ Sep 14 high) and 120.95 (Sep 11 high). On the downside, supports are seen at 120.10/08 (Sep 16 low/10-day SMA), 119.84 (Sep 14 low) and 119.39 (Sep 15 low).
US consumer price index fell 0.1% in August, the Labor Department said Wednesday, missing expectations of a flat reading and down from a 0.1% increase in July. Excluding volatile food and energy components, so-called core CPI rose 0.1%, in line with median forecast. From a year earlier, CPI grew 0.2% in August (0.2% exp.) and core prices rose 1.8% (1.9% exp.).
The dollar weakened slightly on the back of soft inflation data as investors await the Fed verdict on Thursday. While the employment sector has shown signs of improvement, inflation remains subdued and well below the central bank’s target, which could delay the liftoff.
USD/JPY key levels
USD/JPY is currently trading at 120.55, still up 0.12% on the day. As for technical levels, immediate resistances could be found at 120.68 (Sep 16 high), 120.80/83 (200-day SMA/ Sep 14 high) and 120.95 (Sep 11 high). On the downside, supports are seen at 120.10/08 (Sep 16 low/10-day SMA), 119.84 (Sep 14 low) and 119.39 (Sep 15 low).