The greenback remained offered today, pushing the USDJPY pair down nearly half a percent, dropping to three-week lows as the USD seems to be losing its medium-term uptrend.

Today’s US PPI data showed that the PPI inflation rose for the 20th straight month. However, it was up slightly less than expected at 9.7% YoY – still a record high.

At the same time, the core PPI (Excluding Food and Energy) rose 8.3% YoY – well above the +8.0% expected and record highs for this indicator (above November’s 7.7% print).

Additionally, initial jobless claims worsened notably to 230,000, up from 207,000 previously, while continuing claims improved sharply to 1.559 million, down from 1.753 million in the last week.

Following the data, USDJPY slipped further, and it is now testing the 50-day moving average (purple line) at 114.20. The short-term uptrend line is also located near that price. In case of a bearish breakdown, we might see a decline toward 113.20.

Alternatively, if bulls reappear, they need to push the dollar back above 115 to cancel the immediate bearish pressure.

14:50, 13 Jan 2022

Source: https://www.axiory.com/analytics/technical-analysis/usdjpy-erases-most-of-the-previous-gains 

Share.

About Author

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.

Comments are closed.