Inflation is running hot in the US, and today’s data confirmed that trend, sending the greenback lower against most of the major peers. 

The USDJPY pair is now testing previous highs near 109.25, and if this level is taken out, we could see a larger correction toward 108.40, where the last important support is seen.

Moreover, there is a short-term uptrend line in the 109.20 region, further reinforcing that support zone. 

Should the greenback decline below 108.40, the medium-term outlook could change to bearish again, targeting the 105 level.

Alternatively, the resistance could be near 109.70, and if bulls push the USD above that level, further rally toward 110 might occur. 

Source: https://www.axiory.com/technical-analysis/usdjpy-drops-after-us-inflation-data

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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