FXStreet (Mumbai) – The Japanese yen fought back its lost ground somewhat against the American dollar, keeping USD/JPY near session lows below 124 barrier. The major snapped its long run of gains and moved away from fresh twelve year peak reached on Thursday after the yen strengthened backed by above estimates Japan’s core CPI figures.
USD/JPY rises from 123.61 lows
Currently, the USD/JPY pair trades -0.17% lower at 123.73, retreating from fresh session lows reached at 123.61 in last hours. The USD/JPY pair keeps losses in the mid-Asian trades largely on the back of better than expected national core CPI from Japan which rose 0.3% y/y in April, a sharp deceleration from the 2.2% rise recorded in March, although beating expectations of only a 0.2% rise.
Moreover, Tokyo’s Core CPI figures also came in line with forecasts at 0.2% in April also lent a helping hand to the yen against the US dollar. Despite current weakness in price pressures, the BOJ is confident that inflation will reach the target rate in fiscal 2016, assuming a partial rebound in fuel prices, and that inflation expectations continue rising.
Moreover, broad based US dollar weakness largely due to mixed US macro data released yesterday also added to the downside in USD/JPY.
Meanwhile, markets now turn their focus towards the much anticipated US GDP figures for further USD moves while month-end positions unwinding may also take a toll on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124 levels and above which it could extend gains 124.47 (May 28 High) levels. To the downside immediate support might be located at 123.47 (May 28 Low) below that at 123 levels.
(Market News Provided by FXstreet)