Despite the decline in U.S. CPI, should we be wary of the direction of the U.S. dollar against the yen?

Despite the decline in U.S. CPI, should we be wary of the direction of the U.S. dollar against the yen?

13.03.2025

In yesterday’s U.S. currency trading, the U.S. dollar rose against the yen despite the fact that the U.S. February Consumer Price Index (CPI), released yesterday, fell by 0.2 percentage points year-over-year to 2.8% from the previous month’s 3.0%. The USD/JPY pair recovered from 147.583 to 147.180.It broke above the resistance level of the 200-period simple moving average (SMA) on the hourly chart. On the 4-hour chart, the RSI rose from 42 to 63. On the daily chart, the price rebounded after touching the -2σ line of the Bollinger Bands.

Among European currencies, the euro rose against the U.S. dollar. The EUR/USD pair climbed from 1.0875 to 1.0929. Price action was observed crossing the 20-period moving average (MA) on the hourly chart. On the 4-hour chart, the uptrend continues, supported by the 20-period MA, and on the daily chart, the pair has risen for three consecutive days. We will need to monitor the direction closely to see if the euro undergoes a correction heading into the weekend.

Today’s economic indicators include UK RICS house prices at 9:01, Swiss producer import prices at 16:30, Eurozone industrial production at 19:00, and Canadian housing permits at 21:30,U.S. Initial Jobless Claims and U.S. Producer Price Index at 19:00, U.S. Weekly Natural Gas Inventories at 23:30, U.S. 30-Year Treasury Auction at 26:00, remarks by German Bundesbank President Nagel at 26:30, and New Zealand Manufacturing PMI at 6:30 the following day. We should pay close attention to the direction of the U.S. dollar against the yen, even though U.S. CPI has declined.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed