USD/JPY around 98.50 after Japan CPI

FXstreet.com (Barcelona) - The USD/JPY has finally breached the 98.50 ask line and is now trading around fresh session and 3-day highs last at 98.57, following the not as good as most have wished Japan CPI figures, showing things are not really changing that fast.

Japan CPI still showing deflation on a yearly basis

The overall nationwide CPI number came in better than previous at -0.3% vs -0.7% and slightly above expectations, but still in deflationary territory. “In the 4 hours chart, a slightly positive tone persists, with risk to the downside increasing with a break below 97.50 support,” said Valeria Bednarik, Chief Analyst at Fxstreet.com.

Key technical levels

The analyst finds support levels at:  98.05, 97.80 and 97.50, while resistance levels at: 98.35, 98.75 and 99.10.

Flash: 10-year US treasuries form bullish engulfing– RBS

According to Technical Strategist Dmytro Bondar at RBS, “As a rule of confirmation, 10-yr Treasuries have formed a bullish engulfing and Euribors see a morning star.”
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