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26 Feb 2015
US CPI fall ignored by USD/JPY pair
FXStreet (Mumbai) - The USD/JPY shot higher to 119.07 levels on an upbeat US Durable goods orders report, although gains above 119.00 were short lived owing to a higher than expected fall in the CPI in January. The pair has backed-off slightly to trade around 118.95 levels.
USD/JPY: rises above 119.00
The pair rose above above 119.00 levels even though the US CPI month-on-month in January fell 0.7%, beating the estimated fall of 0.6%, and down from the previous month’s 0.4% fall. Year-on-year the CPI printed in line with the expected 0.1% fall. Furthermore, the initial jobless claims in the last week came-in at 313K, beating the estimate of 290K.
Moreover, the jump to 119.07 levels is mainly triggered by the Durable goods orders data in January, which rose 2.8%, beating the estimate of 1.9%. The 10-year Treasury yields in the US recovered losses to trade at 1.969%, mainly on account of sharp rise in the durable goods data. Consequently, the USD/JPY pair rose to trade above 119.00.
USD/JPY Technical Levels
The immediate resistance is seen at 119.40, above which gains could be extended to 120.00 levels. On the flip side, a break below 118.90 could drive the pair lower to 118.50 levels.
USD/JPY: rises above 119.00
The pair rose above above 119.00 levels even though the US CPI month-on-month in January fell 0.7%, beating the estimated fall of 0.6%, and down from the previous month’s 0.4% fall. Year-on-year the CPI printed in line with the expected 0.1% fall. Furthermore, the initial jobless claims in the last week came-in at 313K, beating the estimate of 290K.
Moreover, the jump to 119.07 levels is mainly triggered by the Durable goods orders data in January, which rose 2.8%, beating the estimate of 1.9%. The 10-year Treasury yields in the US recovered losses to trade at 1.969%, mainly on account of sharp rise in the durable goods data. Consequently, the USD/JPY pair rose to trade above 119.00.
USD/JPY Technical Levels
The immediate resistance is seen at 119.40, above which gains could be extended to 120.00 levels. On the flip side, a break below 118.90 could drive the pair lower to 118.50 levels.