Quick move lower reversed in whippy trading
The USDJPY fell sharply after the US CPI data came in at 0.1% for headline and core, below the 0.2% estimates. Real average earnings YOY rose to 2.2% from 1.8% however, and the pair has reversed to the highs for the day. The 1.8% was the lowest on the year, but the high in 2015 was 3.0% in January. So it seems there might have been some bids against the 123.00 level which may have given the pair a boost. Remember the summer time markets can be quite whippy.
The pair is currently trading just above the 100 hour MA at the 124.36 level. The 200 hour MA comes in at 124.47. The high for the day is 124.42. A move above the 200 hour MA (and the trend line) is the next upside hurdle for the pair. The 50% of the move down from the pre-china devaluation comes in at 124.528. The pair has been struggling with generating much momentum above this level over the last 5 days of trading. Getting above and staying above will be key.
CPI is a thing of the past. The pair is testing the 200 hour MA as I post......
