Even after September US CPI came in above expectations, USD/JPY remained within the morning forecast range of 157.50-158.80, with gains above ¥158 continuing to face resistance.
The morning forecast range for USD/JPY was 157.50-158.800, while the previous day it rose to around ¥158.95 before ultimately ending trading at around ¥158.34. As it failed to close above the 200-day moving average, USD/JPY was expected to remain firmly capped on the upside.
USD/JPY, which temporarily rose on the back of an upside surprise in US CPI, subsequently struggled to extend its gains as US 10-year Treasury yields declined. The dollar was expected to remain well supported in the ¥157 range, underpinned by higher oil prices and expectations of further Fed rate hikes. Attention turned to the PPI and retail sales figures due to be released during the New York session.
The full report is provided as analysis by 外為どっとコム総合研究所, with the latest USD/JPY chart available on the 外為どっとコム chart page.