VOT Research Desk
USD/JPY traders are seeing a lack of direction as the quote grinds higher around 137.70 in early Tuesday Europe after revisiting the multi-day high in the Asian session.
The yen pair’s recent inaction could be attributed to a lack of important data/events, as well as a cautious mood ahead of the November US Consumer Price Index (CPI).
It should be highlighted that mixed concerns about the Bank of Japan’s (BOJ) forthcoming steps, as well as sluggish US Treasury yields, limit the immediate USD/JPY moves.
Moving on, the market’s contradictory signals, as well as concerns about Russia and China, may limit USD/JPY advances ahead of US inflation data. However, the US CPI is predicted to rise by 7.3% year over year.
The USD/JPY bulls are challenged around 138.70 by a convergence of the 61.8% Fibonacci retracement level of the Yen pair’s run-up between August and October, as well as a seven-week-long downward-sloping trend line.
|
Daily SMA20 |
138.31 |
|
Daily SMA50 |
143.21 |
|
Daily SMA100 |
141.1 |
|
Daily SMA200 |
135.16 |
