Japanese Yen pares losses ahead of US inflation report
The Japanese Yen (JPY) trades flat above 159.00 on Tuesday after several days of US Dollar (USD) strength following the intervention that briefly boosted the Yen. The pair has retraced most of its sharp intervention-driven decline, facing pressure from elevated Oil prices and a firm US Dollar (USD).
The Japanese Yen regained some lost ground ahead of the US inflation report on Tuesday, trading just above 159.00 after several days of strengthening against the US Dollar (USD). The pair recovered much of its sharp decline sparked by intervention, but still faced headwinds from high oil prices and a firm USD. Iran's Security Chief Mohsen Rezai warned the US to end its war and release Iranian funds, citing specific conditions for any possible Iran-Oman agreement on the Strait of Hormuz shipping.
Meanwhile, markets await the US Consumer Price Index (CPI) data on Wednesday, which may influence Federal Reserve rate hike expectations. The 4-hour chart shows USD/JPY at 159.24, supported by a bullish bias and a strong near-term bias above the 20-period Simple Moving Average (SMA) at 158.63. Key support levels are at 159.14 and 158.95, while resistance is noted at 159.40 and the 100-period SMA at 160.83.
On the downside, immediate support is at 159.14, followed by 158.95, 158.81, and the 20-period SMA at 158.63. Gold is also showing signs of recovery, targeting $4,400 per troy ounce amid mixed US Treasury yields and geopolitical concerns.
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