Usdjpy Trades On Sticky Inflation

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Usdjpy Trades On Sticky Inflation

Usd/Jpy Trades Above 150 On Sticky Inflation

The USD/JPY is on the path to a cheerful ending to the day and the week. For now, the pair has traded above the 150 handle with a gain of around 0.16% for the day.

The USD/JPY can be seen near 150.16, suggesting it is sitting comfortably above the 150 support zone. On the fundamental front, the recent inflation reading showed that it would not be as easy to tame as the Fed & and market players were initially thinking.

Us Citizens Optimistic About Economy

The PPI report showed a sudden jump in inflation, while the consumer sentiment report shows that the citizens are still optimistic about the economy. However, Americans have raised their expectations for inflation for the year, which means the inflation is still very sticky.

After the recent development, it has become clear that the Fed's cautious approach to inflation and rate cuts was right. According to Daly & Bostic from the Federal Reserve, the easing cycle can only come after confirmation that inflation has indeed gone down.

The technical reading of USD/JPY shows that the pair formed a peak near the 150.00 to 150.88 area. The USD bulls must conquer the 151.00 handle for any continued bullish ascend.

break of the 151.00 resistance will open the doors to 151.91, the high from 13th November. A successful break of this level will open the possibility of a retest of the 152.00 resistance.

On the contrary, a break below the 150.00 support will mean a revisit of the 149.25 where the Tenkan-Sen from the Ichimoku indicator is present. After that, the 148.43 support is relevant based on Ichimoku. The following support is the 147.62 - 153.50 area.

The 20 SMA is near 148.44 on the daily chart, while the 50 SMA is located at 145.73. The 100 SMA can be found near 147.55, while the 200 SMA is near 145.29.

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