USD/JPY heads into Wednesday trading after a relatively flat Tuesday near 148.60.
The US Dollar fell against the Yen to start the week after the Gaza conflict sparked risk aversion.
Markets are set to turn their eyes to US inflation figures due today and Thursday.
The US Dollar (USD) held mostly flat against the Japenese Yen (JPY) on Tuesday with a little bit of wiggle, and the USD/JPY pair is headed into the Wednesday market session trading near 148.60.
With little meaningful data slated for the economic calendar from Japan this week, it’s all about US inflation numbers heading into the midweek.
US Producer Price Index (PPI) figures due Wednesday could see a dogpile into the US Dollar if the release sees a firm surprise to the upside. With markets easing back expectations of additional rate hikes from the Federal Reserve (Fed), a sudden uptick in inflationary figures would see US Treasury yields surge and the Greenback soar once more.
US PPI figures for the annualized period into September are forecast to print at 2.3%, down slightly from the previous period’s 2.2%.
Wednesday will also see the release of the Fed’s latest meeting minutes, due later in the day at 18:00 GMT.
In an inflation follow-up to the PPI data drop, Thursday will be bringing high-impact US Consumer Price Index (CPI) numbers, where markets are hoping for a downtick in the annualized figure into September from 3.7% to 3.6%.
USD/JPY Technical Outlook
The long-term trend outlook for the USD/JPY is exceedingly bullish, with the Greenback trading well above the median against the Yen. The USD/JPY continues to soar high above the 200-day Simple Moving Average (SDMA), which is currently riding up into the 139.00 chart region, with technical support for the pair currently sitting near 147.00 from the 50-day SMA.
Traders will note that USD/JPY prices near the 150.00 major handle have historically been a place of interest for the Bank of Japan (BoJ) to threaten (or unexpectedly execute) FX market interventions to protect the Yen.
USD/JPY Daily Chart
USD/JPY Technical Levels
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management.
Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-jpy-treading-water-near-14860-as-investors-sniff-out-us-inflation-figures-202310102350