Capital Trust
Capital Trust

Oct 28, 2016

05:34 PM EDT

  • New York close
  • London close
  • Tokyo close
  • Sydney open
Market Analysis

Home » Featured » USDJPY Gains Traction ahead of Japan CPI

USDJPY Gains Traction ahead of Japan CPI

Posted by FXTimes in Featured - April 30th, 2015 5:26 pm GMT


Technical Bias: Bullish


  • USDJPY trading at weekly highs ahead of Japan CPI.
  • Tokyo core CPI forecast to fall to 0.5% YoY in April from 2.2%.
  • BOJ keeps monetary policy unchanged, downgrades GDP and inflation forecast.

The USDJPY extended its gains on Thursday, edging closer to the psychological 1.2000 barrier ahead of Japan CPI data.

The USDJPY climbed to its highest level of the week, reaching a daily high of 119.89. It would subsequently consolidate at 119.62, advancing 0.4 percent. The USDJPY is testing the New York daily high of 119.60. A break above that level would lead to a test of the 50-day SMA (119.83). On the downside, the pair faces initial support at 118.50, the daily low.


Screenshot (296)


Bank of Japan

The Bank of Japan kept policy unchanged in an 8-1 vote on Thursday and lowered its forecasts for economic growth and inflation, raising speculation that future monetary easing may be on the table.

The BOJ lowered its GDP forecast for the fiscal year to 2 percent from the 2.1 percent it had projected in January. For fiscal year 2016 the central bank expects GDP to advance 1.5 percent, compared to 1.6 percent in its previous forecast.

The core consumer price index (CPI) is forecast to rise 0.8 percent in fiscal year 2015, down from the previous forecast of 1 percent. Core CPI was downgraded to 2 percent from 2.2 percent for fiscal year 2016.


Japan will release official inflation data in Friday’s Tokyo session, including national CPI, national core CPI and Tokyo core CPI.

National core CPI is forecast to rise 2 percent annually in April, unchanged from the previous month. The Tokyo core CPI rate is forecast to slow to 0.5 percent annually from 2.2 percent.

Share!Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+

No comments yet.

You must be logged in to post a comment.

Forex, Commodities, Indices

Face Book and Twitter Box

Daily Updates

Daily Updates

Get the latest fundamental analyses, technical analyses and the most up-to-date Forex news catered to your interests, everyday.