Japanese Yen little changed amid cooling US inflation
USD/JPY is trading sideways on Thursday, hovering in the mid-159.00s and holding within its recent range. It is more of the same for the pair, which continues to move in consolidation as opposing forces cancel each other out.
USD/JPY remains stable on Thursday, hovering around the mid-159.00 level and within its recent trading range. The Japanese Yen (JPY) continues to trade in consolidation as opposing forces, such as expectations of further Federal Reserve (Fed) tightening and signs of cooling US inflation, counter each other. US Dollar (USD) support is being tempered by indications that inflation is easing, following this week's soft producer price data.
Middle East uncertainty and cautious risk appetite also contribute to the lack of sharp price movements in either direction. On the JPY side, attention will focus on Friday's growth figures for Japan, which are projected to show third-quarter expansion. Support levels for USD/JPY include the nearby horizontal level at 159.48, followed by 159.37 and the 20-period Simple Moving Average (SMA) at 159.30.
The primary resistance level is the 100-period SMA at 160.43. Technical analysis, aided by an AI tool, indicates a bullish near-term bias for USD/JPY, with the Relative Strength Index (RSI) at 60.07 suggesting constructive momentum as long as the pair remains above the short-term average.
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