FXStreet (Edinburgh) – The greenback is now picking up pace vs. its Japanese counterpart on Thursday, lifting USD/JPY to the area of 119.65/70.
USD/JPY bid following better US CPI
The pair has managed to leave the area of session troughs in the 118.00 neighboourhood following the auspicious results from the US docket, where Core consumer prices have risen more than estimated during the last month and Initial Claims dropped to 255K in the week ended on October 9th, bettering both consensus and the previous week’s reading.
The now better tone from US Treasuries are sustaining the current USD upside ahead of the Philly Fed manufacturing survey and speeches by Fed members J.Bullard, W.Dudley and L.Mester.
USD/JPY relevant levels
At the moment the pair is losing 0.23% at 118.55 with the next support at 118.00 (psychological level) followed by 116.16 (low post PBoC move Aug.24) and finally 115.82 (ytd low Jan.15). On the other hand, a breakout of 119.96 (Fibo 50% of 125.62-116.46) would expose 120.89 (200-day sma) and then 121.23 (55-day sma).
(Market News Provided by FXstreet)