USD/JPY is tracing lower, down 0.3% to 125.25 as price backs further away from the potential break above 126.00 yesterday. It seems like the 'peak inflation' trade is playing out after the US CPI report earlier in the week and the drag on Treasury yields is also weighing on the dollar over the past few sessions.
There has been some pushing and pulling in between but for now, the dollar looks to have met some resistance with key levels also being held in the euro and pound. Let's take a look.
EUR/USD was weighed down to 1.0808 and came close to testing the March low but it does have a semblance of a double-bottom bounce as price climbs above 1.0900 currently:
I'd be more convinced of an upside push above the 6-11 April highs close to 1.0940 but for now, buyers are also showing some poise in pushing back above the key hourly moving averages of 1.0871-03.
Meanwhile, we are seeing GBP/USD track higher back above 1.3100 on a daily hold of the 1.3000 level:
The near-term picture also shows buyers seizing back control on a push above the key hourly moving averages of 1.3038-65. But it would be more convincing for a stronger rebound if price can clear the recent swing highs around 1.3165-83 and the 1.3200 handle.
