Key Take-Aways
- Further gains were made by USD/JPY, which traded above 147.00 to a fresh multi-year high.
- On the 4-hours chart, a significant bullish trend line is developing with support at 146.50.
- Following the release of the US CPI report, gold and oil prices fell.
- In September 2022 (YoY), the US CPI grew 8.2%, exceeding the prediction of 8.1%.
Technical Analysis of USD/JPY
In relation to the Japanese Yen, the US Dollar began a new rise above the 145.00 resistance level. USD/JPY exchanged hands at a new multi-year high, even breaking over the 147.00 mark.
On the 4-hours chart, the pair has positioned itself well above the 145.00 level, the 100 simple moving average (4-hour red) and the 200 simple moving average.
The resistance levels at 147.00 and 147.20 were clearly broken. In addition, the pair increased after the announcement of the US CPI data. When compared to the same month a year prior, the market prediction for September 2022 was +8.1%.
However, the CPI rose 8.2% in September 2022 rather than the previous 8.3%. A new multi-year high was reached when the pair surged higher and cleared the 147.50 mark.
The pair may move above the 148.00 mark if the bulls continue to trade. Near the 148.50 level comes the next significant obstacle.
The pair might advance toward the 150.00 level if there is a decisive rise above the 148.50 level. Near the 152.00 level may be the next significant obstacle.
An initial support for the downside is located close to the 146.20 level. The 145.50 level serves as the main support. On the same chart, a significant bullish trend line is also developing, with support at 146.50. The pair may move toward the 144.20 level if the downside breaks below the 145.50 area.
The US CPI report caused a dramatic bearish reaction in the gold price, which fell below the $1,650 support area before subsequently rising.
Economic News To Trade Today
- US Import Price Index for September 2022 (MoM): Forecast -1.1%, down from -1.0% in the preceding period.
- US Export Price Index for Sep 2022 (MoM) – Forecast -1.0%, versus -1.6% previous.
US Retail Sales for Sep 2022 (MoM) – Forecast +0.2%, versus +0.3% previous.
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