Moves toward the prior close at 119.71
The USDJPY has rallied after the US CPI climbed from -0.1% to 0.0%. The ex food and energy came in as expected at 1.7%. Ex-food and energy month on month rose by 0.2%.
THe USDJPY shot up on the data, extending up toward the closing level from yesterday at 119.713 (the high reached 119.674). The market will need a move above the prior close to gather more momentum. If the momentum higher is to continue, we should see support near the 119.48 area. This represents the 50% retracement of the move higher. Is also near the underside of the broken trend line on the 5 minute chart at 119.46 (see chart below). A move below this area would not be a welcome development for the buyers.
