USD/JPY reverses on consumer price data in the US
|U.S. consumer prices climbed in April by the most since 2009, topping forecasts and intensifying the already-heated debate about how long inflationary pressures will last. The consumer price index increased 0.8% from the prior month, reflecting gains in nearly every major category and a sign burgeoning demand is giving companies latitude to pass on higher costs. Excluding the volatile food and energy components, the so-called core CPI rose 0.9% from March, the most since 1982, according to US Departmet of Labor. The gain in the overall CPI was twice as much as the highest projection in a survey of economists. Similar to last week’s monthly jobs report, forecasters are struggling to get a handle on the rapidly reopening economy which appears now to be decidedly overheating as exhibited by price moves in commodity prices.
The Yen gave up early gains in trading after the report as the greenback gained some attention and buyers on a flight to safety by participants. We present our intraday trade idea for the popular forex pair USD/JPY. We joined the trade long a tad bit late but we are now in this trade idea sitting nicely profitable having entered just at the outer bounds of the suggested entry range.
Trade idea
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