USDJPY, H1 & H1
The weak inflation data out of Japan overnight pressured the already weakening YEN. The core CPI figure came in at a lacklustre 0.8% y/y clip, the same rate as June and disappointing the median forecast for a 0.9% reading. This key data point is a favourite of the BOJ.
USDJPY continued its bid and rallied through 111.00, holding 111.40 so far today. The H4 timeframe broke the key 20-period moving average Wednesday (August 22) morning and has rallied strongly since. The strong breach and break of the 200 moving average yesterday added to the momentum and took the pair into the oversold area as the RSI breached 70.00. Next Resistance is the R1 at 111.55 and R@ and the upper Bollinger Band at 111.80. Support zone sits at the daily Pivot point to 200 moving average (111.00-110.92).
We await the Durable Goods data at 12:30 GMT, which are expected to show a rebound and the keynote speech from Jackson Hole by FED Chair Jay Powell at 14:00 GMT.
