Today’s USD/JPY trading shows mixed signals as market participants anticipate key US economic data, including the Consumer Price Index (CPI), which is expected to influence the Fed’s interest rate decision. The dollar is trading near its recent highs against the yen, supported by strong labor market data, but the momentum has slowed as traders await confirmation of inflation trends. Economists predict a slight decline in inflation, which could strengthen the case for another rate cut in November.
Technically, USD/JPY continues to trade with a bullish bias but shows signs of weakening. The Relative Strength Index (RSI) indicates fading strength, suggesting potential for a pullback if key support levels are breached. However, if inflation data comes in lower than expected, it may reinforce the bullish trend.
Keep an eye on the CPI data and any Fed-related commentary for further directional cues.
Please note that this information does not guarantee profits, so make your own decisions when trading.