Japanese Yen Faces Challenges After Tokyo CPI Data Release
- The Japanese Yen (JPY) experienced a decline following the Tokyo Consumer Price Index (CPI) data release on Friday.
- In September, the Tokyo CPI rose by 2.2% year-over-year, showing a decrease from August’s 2.6% increase.
- Dovish remarks from Federal Reserve officials exert downward pressure on the US Dollar.
The Japanese Yen (JPY) continued its downward trend for the third consecutive session after the release of the Tokyo Consumer Price Index (CPI) data on Friday. Traders are concerned about the Bank of Japan’s (BoJ) decision-making regarding further rate hikes, leading to challenges for the JPY.
Key Insights from Tokyo Consumer Price Index Data
- The Tokyo Consumer Price Index (CPI) reported a 2.2% year-over-year increase in September, down from the previous month’s 2.6% rise.
- CPI excluding fresh food and energy remained stable at a 1.6% YoY increase in September.
- CPI excluding fresh food met expectations with a 2.0% increase, compared to the previous month’s 2.4% rise.
Traders are closely watching the US Personal Consumption Expenditures (PCE) Price Index data for August, the Federal Reserve’s preferred inflation gauge, for potential market-moving insights.
Daily Digest Market Movers: Insights and News
- Fed Governor Lisa Cook expressed support for the recent 50 basis points interest rate cut, citing increased “downside risks” to employment.
- US Gross Domestic Product Annualized remained at a 3.0% growth rate in the second quarter, according to the US Bureau of Economic Analysis (BEA).
- US Initial Jobless Claims for the week ending September 20 came in at 218K, below expectations and the previous week’s figure.
BoJ Policy Outlook and Federal Reserve Comments
- BoJ Monetary Policy Meeting Minutes highlighted the importance of monitoring inflation risks.
- Federal Reserve Governor Adriana Kugler supported the recent rate cut and suggested additional cuts if inflation eases.
Technical Analysis: USD/JPY Outlook
USD/JPY is trading around 145.10, showing a bullish bias with an upward movement within an ascending channel. The Relative Strength Index (RSI) confirms a bullish sentiment.
Key Levels to Watch:
- Resistance: 146.90, 147.21
- Support: 143.89
Japanese Yen PRICE Today
The Japanese Yen (JPY) weakened against the US Dollar today, as shown in the percentage changes against major currencies.
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