USD/JPY declined on Friday after data showed U.S. consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year. T…
USD/JPY declined on Friday after data showed U.S. consumer prices rose less than expected in July, pointing to benign inflation that could make the Federal Reserve cautious about raising interest rates again this year.
The U.S. consumer price index edged up 0.1 percent last month after being unchanged in June. Economists had expected the CPI to rise 0.2 percent in July.
The dollar fell to a sixteen-week low against the Japanese yen but pared some of the losses after Russian Foreign Minster Sergei Lavrov said there was a Russian-Chinese plan to defuse tensions between the United States and North Korea.
The currency pair is trading at 109.40, it is set to advance towards 109.00 and later towards 108.60 levels in the short term.
To the upside, the strong resistance can be seen at 109.17, a break above this level would take the pair towards next resistance level at 109.40.
To the downside immediate support can be seen at 108.90, a break below this level will open the door towards next level at 108.90.
Resistance Levels
R1: 109.17 (50% Retracement Level)
R2: 109.40 (61.8% Retracement Level)
R3: 110.10 (Aug 10th high)
Support Levels
S1: 108.90 (38.2% Retracement Level)
S2: 108.60 (23.6% Retracement Level)
S3: 108.00 (Psychological levels)
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