As The United States Consumer Price Index Falls Below 8%, The USD/JPY Declines
- The USD/JPY fell sharply and fluctuated below the 145.50 level of support.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to 147.80.
- Above the $1,715 and $1,720 resistance levels, gold’s price continued to rise.
- In October 2022 (YoY), the US CPI grew 7.7%, down from 8.2%.
Technical Analysis of USD/JPY
The 148.50 resistance level versus the Japanese Yen marked the beginning of a new drop for the US Dollar. When USD/JPY fell below the 146.50 support, a brief downturn was initiated.
October 2022 (YoY), the US CPI grew 7.7%, down from 8.2%.
It caused the USD/JPY to quickly fall below the 145.50 support region. The 100 simple moving average (red, 4-hours) and the 200 simple moving average were all well below the 145.50 support level for the pair (green, 4-hours).
The pair was successfully pushed below the 143.20 support by the bears. Before the bulls intervened, the pair had a spike below the 142.00 mark. On the plus side, the pair may run into obstacles close to the 142.80 level.
The area around 143.20 might serve as the next significant resistance. Any additional gains would accelerate a move in the direction of the 144.50 mark, above which it could attempt 145.50.
The 141.50 level serves as a temporary support. Near the 140.40 zone is the next significant support. At 140.00, the major support is located. A closure below the 140.00 mark could signal the beginning of a new, severe drop. In the aforementioned scenario, USD/JPY can fall toward the 138.00 support.
Looking at the price of gold, there was a significant upward movement above $1,720, and it appears that the price may potentially rise above $1,750.
Economic News To Trade Today
- UK GDP for Q3 2022 (QoQ) (Prelim) is expected to be -0.5%, down from the previous +0.2%.
Author: Amogo Solomon
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