USD/JPY Price Analysis: Marches firmly towards 144.40 after elevated US CPI
13.09.2022, 18:10

USD/JPY Price Analysis: Marches firmly towards 144.40 after elevated US CPI

  • USD/JPY is in overbought conditions, but the BoJ’s dovish stance would keep the yen weak.
  • A clear break of 145.00 would send the major rallying toward August 1998 at 147.67.

The USD/JPY rallied after the US Department of Labor reported that inflation was decelerating but exceeding estimations, catching off USD/JPY traders expecting a lower reading. At the time of writing, the USD/JPY is trading at 144.43, up by 1.09%.

USD/JPY Price Analysis: Technical outlook

After the US inflation report struck newswires, the USD/JPY rallied towards the daily highs at 144.68. Worth noting that, albeit being upward biased, the Relative Strength Index (RSI), alongside price action, shows signs that the USD/JPY is overbought. Nevertheless, the Bank of Japan’s dovish stance would likely pressure the Japanese yen, opening the door for the August 1998 test at 147.67.

Short term, the USD/JPY one-hour scale depicts the major testing of September’s 8 daily high at 144.44. A clear break would expose September 7 daily high at 144.56, followed by the YTD high at 144.99. On the other hand, the USD/JPY first support would be the 144.00 figure. Once cleared, the next support would be the R1 daily pivot at 143.50, followed by the 100 and 20-EMAs at around 143,18 – 143.05 area, respectively. A breach of the latter would expose the Daily pivot at 142.81.

USD/JPY Key Technical Levels

 

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