FxWirePro: USD/JPY defends 140 mark, poised to snap 4-week bearish streak

Chart - Courtesy Trading View 

USD/JPY comatose above 140 mark, with session high at 140.49 and low at 139.64.

The major was trading 0.92% higher on the week, poised to snap a 4-week bearish streak. 

Yen pair shows little reaction to the solid inflation data from Japan amid dovish BoJ speak upbeat US Treasury yields.

Japan’s headline National Consumer Price Index (CPI) was up 3.7% YoY versus 2.7% expected and 3.0% prior. 

More importantly, the National CPI ex-Fresh Food, mostly known as the Core CPI, rose at the highest pace since 1982.

Yen pays little heed to inflation data as Bank of Japan (BOJ) policy makers, including Governor Haruhiko Kuroda, have recently defended the central bank’s easy-money policy.

Data from the US on Thursday showed Philadelphia Fed Manufacturing Index fell to -19.4 versus -6.2 market forecasts and -8.7 prior. 

Further, Housing Starts declined by 4.2% MoM in October following September's 1.3% contraction whereas Building Permits fell by 2.4%, compared to a 1.4% increase recorded in the previous month. 

Additionally, the Jobless Claims eased to 222K for the week ended on November 11 versus 225K expected and upwardly revised 226K prior.

Also, fresh tensions between Russia and Ukraine after missile strikes on Poland, as well as the increasing Covid cases in China underpin the US Dollar’s safe-haven demand, supporting upside in the pair.

Major trend in the pair has turned neutral. Price action remains capped below 200H MA. Decisive break above will fuel further gains.