16 Jan 2015
USD/JPY edges higher after US CPI
FXStreet (Córdoba) - USD/JPY inched higher at the beginning of the New York session despite data showed US consumer price index came mainly on the soft side.
US consumer price index fell 0.4% in December from a decline of 0.3% the previous month, posting the biggest drop since December 2008. On annual basis, prices rose 0.8%, and although the reading beat expectations of a 0.7% increase, it was the slowest pace in more than 5 years. Meanwhile, excluding energy and food, consumer prices stood unchanged in December and climbed 1.6% YoY missing estimates of 0.1% and 1.7% respectively.
USD/JPY reacted positively to data, climbing to the 116.75 area, but lacked momentum to extend the move much higher. At time of writing, the pair is trading at 116.65, recording a 0.45% gain on Friday.
USD/JPY technical levels
As for technical levels, next resistances could be found at 116.82 (daily high), 117.00 (psychological level) and 117.50 (100-hour SMA). On the flip side, immediate supports are seen at 115.84 (daily low), 115.45 (Nov 17 low) and 115.30 (Nov 13 low).
US consumer price index fell 0.4% in December from a decline of 0.3% the previous month, posting the biggest drop since December 2008. On annual basis, prices rose 0.8%, and although the reading beat expectations of a 0.7% increase, it was the slowest pace in more than 5 years. Meanwhile, excluding energy and food, consumer prices stood unchanged in December and climbed 1.6% YoY missing estimates of 0.1% and 1.7% respectively.
USD/JPY reacted positively to data, climbing to the 116.75 area, but lacked momentum to extend the move much higher. At time of writing, the pair is trading at 116.65, recording a 0.45% gain on Friday.
USD/JPY technical levels
As for technical levels, next resistances could be found at 116.82 (daily high), 117.00 (psychological level) and 117.50 (100-hour SMA). On the flip side, immediate supports are seen at 115.84 (daily low), 115.45 (Nov 17 low) and 115.30 (Nov 13 low).