The dollar / yen is trading slightly lower and in a very tight range on Friday evening, with investors positioning themselves at the start of the weekend. In addition, the volume is well below average, the main international banks being closed due to Good Friday.
Earlier in the session, the US Department of Labor reported that consumer and core inflation figures were lower than expected on Friday.
USD / JPY trades 108.390, down 0.109 or -0.10%. “data-reactid =” 21 “> At 19:59 GMT, the USD / JPY is trading 108.390, down 0.109 or -0.10%.
Reading the US CPI was -0.4%, which is lower than the -0.3% that traders expected and also much lower than last month’s 0.1% figure. the US Core CPI was -0.1% which was 0.1% below market forecast and also 0.2% below the previous report. “data-reactid =” 22 “> The US CPI index was -0.4%, which was lower than the – 0.3% that traders expected and also well below the figure of 0 , 1% last month The core US CPI was -0.1%, which was 0.1% below market forecast and also 0.2% lower than the previous report.
The government report said the drop in crude oil prices, which pushed down the price of gasoline, was responsible for the sharp drop in the gasoline index and contributed significantly to optimistic data from the CPI.
The 10% drop in the gasoline index also outweighed the gain in the food index, which rose 0.3%. It is the first time since January 2010 that the core US CPI has dropped.
Daily technical analysis
The main trend is downward according to the daily swing chart. A trade in 106.921 will signal a resumption of the downtrend. A move across 111,715 will change the main upward trend.
The exit of 108.211 will make 109.381 a new main peak.
The short-term range is 111,715 to 106,921. Its retracement area at 109.318 to 109.884 is the resistance. This zone halted purchases at 109,381 on April 6.
The main range is 112,226-101,185. Its retracement area from 108.008 to 106.706 is the closest support area. This area stopped selling at 106.921 on April 1. This area controls the longer term direction of the dollar / yen
The trader’s reaction from 108.008 to 106.706 will determine the short term direction of the USD / JPY.
The growing demand for risky assets is helping to generate upward momentum. However, the dollar / yen weighs on the safe haven dollar.
The most bullish combination for the short-term USD / JPY will be the end of the sale of the dollar and the increase in demand for stocks.
I can see an upward bias developing on a steady move above 109.381, and the downtrend should resume if 106.921 fails as a support.
article was originally published on FX Empire “data-reactid =” 35 “> This article was originally published on FX Empire