• USD/JPY falls sharply as U.S. consumer inflation data shows slowing core inflation.
  • Bank of Japan Governor's hawkish comments lift Yen; U.S. 10-year yields drop 12bps.
  • Upcoming Fed speeches and U.S. economic data key for further market direction.

The USD/JPY dropped over 1% in early trading during the North American session as inflation data in the United States (US) resumed its downward trajectory in core figures. The pair trades at 156.33 at the time of writing.

US Dollar falls to 156.33 against Yen following US inflation data that showed a slowdown in core price

The US Bureau of Labor Statistics (BLS) revealed that consumer inflation rose by 0.4% Month over Month, exceeding estimates of 0.3% for an unchanged number compared to November’s reading. Annualized, the Consumer Price Index (CPI) rose 2.9% as expected, up two ticks from the previous reading of 2.7%.

Excluding volatile items, the so-called core inflation expanded by 0.2% MoM, as expected. At the same time, in the twelve months to date, it is up 3.2%, lower than the 3.3% printed in November and projected by economists.

The Yen extended its gains as the USD/JPY slipped from around 157.00 to current spot prices. Following suit, the US 10-year Treasury note yield plunged over twelve basis points (bps) to 4.661%.

Earlier during the Asian session, Bank of Japan (BoJ) Governor Kazuo Ueda was hawkish. He stated that they will hike rates and adjust the degree of monetary support if the economy improves and price conditions continue. He emphasized that Spring wage talks are crucial and noted that BoJ’s branch managers’ meeting showed an encouraging view on pay.

Later in the day, Fed speakers Thomas Barkin, Neel Kashkari, and John Williams will cross the newswires ahead of Thursday's Retail Sales and jobless claims data. The Japanese economic docket is empty for the remainder of the week.

USD/JPY Price Analysis: Technical outlook

The uptrend remains intact, yet the USD/JPY might retreat in the short term. Once sellers pushed prices below the Tenkan-sen of 157.41, that opened the door for further losses. The next key support would be the 156.00 figure, followed by the Kijun-sen at 154.94. The next support would be the 50-day Simple Moving Average (SMA) at 154.74 if cleared.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

  USD EUR GBP JPY CAD AUD NZD CHF
USD   -0.22% -0.49% -1.03% -0.20% -0.72% -0.64% -0.19%
EUR 0.22%   -0.27% -0.82% 0.00% -0.50% -0.42% 0.03%
GBP 0.49% 0.27%   -0.58% 0.29% -0.23% -0.15% 0.32%
JPY 1.03% 0.82% 0.58%   0.84% 0.32% 0.40% 0.87%
CAD 0.20% -0.00% -0.29% -0.84%   -0.52% -0.43% 0.02%
AUD 0.72% 0.50% 0.23% -0.32% 0.52%   0.09% 0.54%
NZD 0.64% 0.42% 0.15% -0.40% 0.43% -0.09%   0.46%
CHF 0.19% -0.03% -0.32% -0.87% -0.02% -0.54% -0.46%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Conversely, if USD/JPY climbs past 157.00, it clears the path to challenge the Tenkan-sen at 157.41. On further strength, the next resistance will be the 158.00 mark.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD tests 1.0450 on the road to recovery, PMIs eyed

EUR/USD tests 1.0450 on the road to recovery, PMIs eyed

EUR/USD holds higher ground near 1.0450 in the early European session on Friday, bolstered by renewed US Dollar weakness. The preliminary reading of the HCOB Purchasing Managers Index for January from the Eurozone and Germany now remains in focus.

EUR/USD News
USD/JPY remains heavy below 155.50 after BoJ's hawkish rate hike

USD/JPY remains heavy below 155.50 after BoJ's hawkish rate hike

USD/JPY is posting sizeable losses while below 155.50 in early Europe on Friday. The pair remains heavy after the Bank of Japan's rate hike to 0.50%. Higher inflation forecasts by the BoJ signals further rate hikes in the offing, lending support to the Japanese Yen ahead of Governor Ueda's presser. 

USD/JPY News
Gold price bulls retain control near multi-month peak amid Fed rate cut bets

Gold price bulls retain control near multi-month peak amid Fed rate cut bets

Gold price catches fresh bids on Friday and builds on over a one-month-old uptrend. Worries about a fresh wave of global trade wars underpin the safe-haven commodity. Bets for more Fed rate cuts weigh on the USD and further benefit the XAU/USD pair.

Gold News
Ripple's XRP faces risk of 20% drawdown as short-term holders show signs of weakness

Ripple's XRP faces risk of 20% drawdown as short-term holders show signs of weakness

XRP investors realized over $500 million in profits in the past 48 hours. Short-term holders are responsible for most of the selling activity following CME's clarification on XRP futures.

Read more
Federal Reserve set for an extended pause

Federal Reserve set for an extended pause

After 100bp of rate cuts the Fed has signalled it needs evidence of economic weakness and more subdued inflation prints to justify further policy loosening. President Trump’s low tax, light-touch regulation policies should be good news for growth.

Read more
Trusted Broker Reviews for Smarter Trading

Trusted Broker Reviews for Smarter Trading

VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures