OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY falls on weak US inflation

FXStreet (San Francisco) - The US reported its first negative monthly CPI since October 2013 and a weaker than expected yearly inflation in August that put the USD under pressure as it hints more problems for the Fed in case they are thinking to hike rates.

The US is back on negative inflation in August with -0.2% MoM. First negative reading since October 2013. In the same line, yearly inflation was reported weaker than expected with 1.7% YoY, down from previous month of 1.9%. It is not a good news for those rate hike believers.

The USD/JPY fell to 107.10 after a 25-pip decline from 107.35 following US data. Currently, USD/JPY is trading at 107.19, up 0.06% on the day, having posted a daily high at 107.37 and low at 107.09.

USD/JPY spot is in neutral territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.

USD/JPY levels

Weak CPI data fueled a renewed dip within recent ranges for the greenback. According to Gerry Davies from FXBeat, there are options expiries at today's New York cut at 106.75 ($300 mln), 107.00 ($100 mln) and 107.25 ($200 mln).

If the pair extends negative figures, it will face next support at 107.00 and 106.80. On the upside, next frontiers are at 107.35, 107.40 and 107.60.

Credit Suisse: Yen to remain under pressure - eFXnews

The eFXnews team remark that Credit Suisse's yen forecast remains bearish.
Read more Previous

EUR/USD jumps after US inflation data

EUR/USD pushed to fresh daily highs at the beginning of the American session after data showed US consumer prices grew less than expected in August.
Read more Next
Start livechat