Thursday, July 14, 2016

USD/JPY recorded small gains in the Asian session

•USD/JPY recorded small gains in the Asian session but and continued with sharp gains in European trade. The pair is unchanged in North American trade
•105.87 is under strong pressure as resistance
•104.99 has switched to support after sharp gains by USD/JPY in the Thursday session
•Current range: 104.99 to 105.87
The Japanese yen has resumed its downward slide on Thursday and posted sharp losses. In the North American session USD/JPY is trading at 105.80. On the release front, there are no Japanese events on Thursday. In the US, the Producer Price Index gained 0.5 percent, beating the estimate. Unemployment Claims remained at 254 thousand, beating expectations. Friday promises to be busy, as the US releases consumer inflation, retail sales and consumer confidence reports.
There was positive news out of the US on Thursday. Inflation showed some strength, as PPI climbed 0.5 percent, ahead of the estimate of 0.3 percent. This marked the highest monthly gain since May 2015. Core PPI followed suit with a gain of 0.4 percent, beating the forecast of 0.1 percent. On the employment front, Unemployment Claims remained at 254 thousand, below the estimate of 263 thousand. Is US inflation on the move? We’ll get a look at CPI numbers on Friday, and a solid release could boost the US dollar.