USD/JPY holds near 155.50 after Tokyo CPI inflation eases more than expected

Source Fxstreet

Apr 25, 2024 23:44

Japan’s Tokyo CPI inflation fell below forecasts early Friday.
US data confounded rate-hungry investors on Thursday.
Markets await BoJ rate call, US PCE Price Index figures.

Japan’s Tokyo Consumer Price Inflation (CPI) inflation printed well below expectations early Friday, which will complicate the Bank of Japan’s (BoJ) upcoming rate call and Monetary Policy Report, due during the Pacific market session.

Tokyo CPI inflation rose only 1.8% on an annualized basis in April, well below the previous print of 2.6%. Markets were broadly expecting Tokyo inflation to hold steady over the period.

Read more: Tokyo Consumer Price Index rises 1.8% YoY in April vs. 2.6% expected

US Gross Domestic Product (GDP) also eased faster than expected, prompting discouragement in risk appetite on Thursday. Further complicating matters, US Personal Consumption Expenditure (PCE) inflation remained stubbornly higher in the first quarter than investors hoping for Federal Reserve (Fed) rate cuts were hoping for.

US PCE Price Index inflation will deliver a fine-tuned look at US inflation later Friday. US MoM Core PCE Price Index numbers for March are forecast to hold steady at 0.3%.

With the Japanese Yen (JPY) trading into multi-year lows across the board, the BoJ is expected to begin weighing market interventions. According to reporting by Nikkei, the Japanese central bank is expected to discuss intervention options to help bolster the battered Yen.

USD/JPY technical outlook

USD/JPY is trading tightly just below the 156.00 handle, hugging multi-year highs as the Yen continues to deflate. The pair is trading into 30-plus year highs, and bullish momentum is targeting all-time record bids beyond 160.00, a price level the pair hasn’t reached since 1990.

The USD/JPY pair is on pace to close bullish for a fourth consecutive month, and is up 10.4% in 2024.

USD/JPY hourly chart

USD/JPY daily chart

Disclaimer: For information purposes only. Past performance is not indicative of future results.

GBP/JPY flounders near 192.00 after suspected BoJ interventions flatten markets GBP/JPY is trading flat near the 192.00 handle after the Bank of Japan (BoJ) is suspected of directly intervening in FX markets to prop up the battered Japanese Yen (JPY) twice in two days earlier this week.

Source Fxstreet

GBP/JPY is trading flat near the 192.00 handle after the Bank of Japan (BoJ) is suspected of directly intervening in FX markets to prop up the battered Japanese Yen (JPY) twice in two days earlier this week.

NZD/USD edges higher on positive market sentiment but systemic factors remain a drag NZD/USD edges higher, up by eight-hundredths of a percent in the 0.5930s, on Thursday, as an improvement in global market sentiment helps commodity currencies, of which the Kiwi is a prime example.

Source Fxstreet

NZD/USD edges higher, up by eight-hundredths of a percent in the 0.5930s, on Thursday, as an improvement in global market sentiment helps commodity currencies, of which the Kiwi is a prime example.

EUR/JPY extends recovery above 168.00 on upbeat Eurozone data The EUR/JPY pair recovers further above the crucial resistance of 168.00 in Tuesday’s European session.

Source Fxstreet

The EUR/JPY pair recovers further above the crucial resistance of 168.00 in Tuesday’s European session.

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