USDJPY towed down as CPI cools off for December.
“Japanese yen cheers as US dollar selloff spurred by possibility of a change in Fed policy stance.”
US dollar extended its losses during early European trading hours after US inflation data reemphasized market expectation towards Federal Reserve. For December, CPI shrank by -0.1%, in line with previous speculation for further slump in inflationary pressure. The data reaffirms possibility of Federal Reserve in dialling down their aggressive stance towards combating rising price of goods through rate hikes.
Quick recap on USDJPY
The pair extended its losses, in line with long-term downward trend.
USDJPY Weekly Technical Analysis
From weekly perspective, the pair is expected to advance further down towards 126.60, evident from increasing downward momentum as displayed by MACD.
USDJPY Daily Technical Analysis
Daily perspective was in line with weekly’s downside bias, while 126.60 will be the next in line to obtain confirmatory signal.
Trading Idea
ORDER: SELL
ENTRY: 128.50
STOP LOSS: 130.00
Target 1: 126.60
Target 2: 124.40
ZFX Analyst’s Comment
With both larger timeframe come together to signal further downside bias, we expect the pair to extend its current momentum further into the oblivion.
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