Market Participants May Wait and See on Upside Potential for USD/JPY Following U.S. PPI Release
14.10.2024
- Switzerland—Producer Import Prices
- Japanese and U.S. markets are closed for a holiday
In the U.S. currency markets last weekend, the U.S. dollar rose against the yen after the U.S. Producer Price Index (PPI), released on Friday the 11th, came in at 1.8% year-over-year—a 0.1-point increase from the previous month’s 1.7%.The USD/JPY pair rose from 148.403 to 149.278. On the hourly chart, the price moved from below the 20-period moving average (MA) to above it. On the 4-hour chart, the 20-period MA is acting as support, while on the daily chart, the price has risen to just below the 200-period exponential moving average (EMA).
Despite the fact that the UK’s August industrial production figures, released on the 11th, showed a year-over-year decline of 1.6%—a worsening from the previous month’s 1.2% decline—the euro rose against the yen.The GBP/JPY pair rose from 193.816 to 195.224, moving upward along the +2σ line of the hourly Bollinger Bands. On the 4-hour chart, it is trading above the 20-period moving average, and on the daily chart, it has remained at the same level for seven consecutive business days.
Today, at 9:00, Singapore’s real GDP; at 13:30, Sweden’s expected price trends; at 15:30, India’s wholesale price index and Switzerland’s producer import prices; at 17:00, the Czech Republic’s current account balance;at 9:00 p.m., India’s Consumer Price Index and the Philippines’ current account balance, Mexico’s Consumer Confidence Index, at 10:00 p.m., Russia’strade balance, U.S. – remarks by Kashkari, President of the Minneapolis Fed, at 28:00, U.S. – remarks by Fed Governor Waller at 30:00, and South Korea’s import and export price inflation rates at 30:00. We will cautiously monitor the upside potential for USD/JPY, which rose following the release of the U.S. PPI.
Author: Keisuke Sakurai
