- For the second day in a row, the USD/JPY currency pair is recovering from its recent strong losses, which reached the support level of 146.48.
- This is its lowest level in five weeks, after improving expectations for the future of starting to raise Japanese interest rates after a long wait.
- Technically, the rebound gains for the dollar/yen pair reached the resistance level of 148.18 before settling around 147.60 at the time of writing the analysis, waiting for any new developments.
According to the results of the economic calendar data, The US Bureau of Labor Statistics released its data on the Consumer Price Index for February and core inflation. Also, the data results showed that the Consumer Price Index for all urban consumers (CPI-U) rose by 0.4 percent in February on a seasonally adjusted basis, after rising by 0.3 percent in January.
Ultimately, this means that inflation figures on a monthly and annual basis proved to be higher than estimates for February.
US stock market indexes closed higher on Tuesday, with technology stocks resuming their recent rise amid slightly higher-than-expected US inflation data that had little impact on expectations for the first interest rate cut by the Federal Reserve in June.
According to stock trading companies' platforms, the Standard & Poor's 500 index rose by 1.1%, to a new closing level, the Nasdaq index rose by 1.1%, and the Dow Jones index rose by 235 points. The headline inflation rate had risen to 3.2%, higher than expectations, but the monthly rate was in line with expectations and core inflation slowed. On the corporate stocks front, NVIDIA stock rose by 7.1%, Meta stock rose by 3.3%, and Microsoft stock rose by 2.6%. Oracle shares closed at an all-time high of $127.54, up 11.7%, marking their biggest daily gain since 2021.
3M's stock rose 5% after the announcement that William Brown, former CEO of L3Harris Technologies, has been appointed its new CEO. However, Boeing's stock continued to decline, losing 4.3% for the third straight session due to security and production issues. Southwest Airlines' stock fell 14.9% after it announced it would reassess its 2024 financial outlook due to Boeing delivery delays this year.
USD/JPY Technical Analysis and Expectations Today:
According to the performance on the daily chart above, the price of the USD/JPY pair is still in the path of a bearish channel that was recently formed. Technically, the move towards the support level of 146.50 pushed the technical indicators towards strong oversold levels. Traders should think about buying at the lowest price, but without risk, especially after the announcement of the latest US inflation numbers. On the other hand, the psychological resistance of 150.00 will remain the most important for bulls to control the direction of the currency pair again.
Generally, with today’s economic calendar devoid of important economic releases, whether from Japan or the United States of America, investor sentiment may have the strongest impact, along with the future of global central banks’ policies.
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