USDJPY
The pair showed limited reaction on upbeat US inflation data today, as the dollar jumped to 107.53 but quickly fell back, erasing all post-data gains. Unlike from other major currency pairs where the greenback advanced strongly, USDJPY's reaction was mild. Better than expected inflation numbers in January and underlying inflation showing the biggest gains in a year, would further boost expectations for Fed's more aggressive approach towards the monetary policy this year and likely prompt the central bank for more rate hikes than planned. Stronger dollar after release of key data pushed stocks lower, which boosted yen and limited dollar's rally, while Japanese currency also advanced against other major counterparts, registering fresh gains against the Euro and British Pound. USDJPY's near-term outlook did not change significantly after strong US data, maintaining bearish bias after rather mild 106.83/107.50 correction (106.83 is new 15-month low posted overnight while 107.50 is the highest traded after release of US CPI data). Fresh easing cracked 107.00 figure and pressured support at 106.83, eyeing target at 106.51 (Fibo 61.8% of 98.99/118.66, Jun/Dec 2016 rally). Initial resistance lies at 107.53 (post data/European session high), followed by session high at 107.90 which guards former low and key support at 108.28, where stronger upticks should be capped.
Res: 107.53; 107.90; 108.28; 108.87
Sup: 106.99; 106.83; 106.51; 106.00
Interested in USDJPY technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
AUD/USD struggles near one-month low despite subdued USD demand
![AUD/USD struggles near one-month low despite subdued USD demand](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/macro-of-aussie-100-note-8615104_XtraSmall.jpg)
AUD/USD consolidates its recent heavy losses and seems vulnerable to sliding further amid worries about the slowing Chinese economy. Unexpected interest rate cuts by the People's Bank of China on Monday might also continue to undermine the China-proxy Aussie. Meanwhile, dovish Fed expectations keep the USD bulls on the defensive.
EUR/USD trapped below 1.09 as quiet Monday markets churn
![EUR/USD trapped below 1.09 as quiet Monday markets churn](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/MoneyEURUSD_3_XtraSmall.jpg)
EUR/USD churned on Monday just below 1.0900 as the new trading week kicks things off on a notably light note. Meaningful data remains limited for the first half of the trading week, leaving Fiber traders to shuffle in place as investors await Wednesday’s key PMI figures for both the EU and the US.
Gold price remains on the defensive below $2,400 mark, over one-week low
![Gold price remains on the defensive below $2,400 mark, over one-week low](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stacks-of-gold-bars-19033163_XtraSmall.jpg)
Gold price struggles to attract any meaningful buyers during the Asian session on Tuesday and languishes near a one-and-half-week low touched the previous day. Biden’s withdrawal from the US Presidential race and unexpected interest rate cuts by the People's Bank of China boosted the global risk sentiment on Monday.
SEC gives final approval for Ethereum ETFs to begin trading
![SEC gives final approval for Ethereum ETFs to begin trading](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Ethereum/ethereum_4_XtraSmall.jpg)
The Securities and Exchange Commission approved the S-1 registration statements of spot Ethereum ETF issuers on Monday, making it the second digital asset ETF to go live in the US, according to the latest filings on its website.
Commodity FX gets no help from higher US equities
![Commodity FX gets no help from higher US equities](https://editorial.fxstreet.com/images/Markets/Commodities/Energy/Gas/soaring-gas-prices-6660220_XtraSmall.jpg)
Markets were all over the place on Monday. US equities put in a decent recovery, though this did nothing to help beaten down commodity FX, with the Australian Dollar, New Zealand Dollar and Canadian Dollar all getting hammered.