The upcoming August inflation data may send mixed signals. The 12-month headline inflation rate is expected to rise to 3.6%, causing concerns for the Biden administration. However, core inflation, which excludes food and energy prices, is projected to decrease to 4.3%, aligning with the Federal Reserve's goals. Past price trends influence both figures, so looking at recent data for a more accurate picture is crucial.
USD/JPY looks vulnerable
2019-11-11 • Updated
SELL 107.40; TP1 107.10; TP2 106.70; SL 107.55
USD/JPY formed a candlestick on the W1 that strongly resembles a “shooting star”. This happened right at the resistance of the 50% Fibonacci retracement of the April-August decline at 108.40. The weak risk appetite may contribute to the strength of the JPY and the weakness of USD/JPY. On the D1, the pair slipped below the 100-day MA (107.90) on Friday. The next bearish target below the last week’s low of 107.45 lies at 107.10 (50-day MA) and then at 106.70.
The odds of a final interest rate hike by the US Federal Reserve (Fed) this year have dropped after US job openings hit their lowest levels since early 2021. This has led to a correction in the US Dollar as traders reduced their bets on further rate hikes.
Here we go again, my friends. It’s time to look critically into the future of what trading opportunities September might have in store for us. As always, it is essential to note that the views expressed here are mine and should not be considered financial advice without proper examination.
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