USDJPY continues to be in a tug of war for both buyers and sellers. After the release of the CPI data, price fell from 153.79, just above the 200-bar moving average (MA) on the 4-hour chart, briefly crossing the converged 100-bar moving average (MA) on the 4-hour and 200-day charts. It fell below. MA. However, none of these skill levels were able to generate significant momentum during the small break.
Currently, the price has settled around the midpoint of these levels at 152.43. This back-and-forth movement leaves both sides with a win-win situation, but the overall trend is still tilted upward. Sellers had an opportunity to push the price lower after breaking the 200-day moving average, but were unable to sustain the move.
Meanwhile, yields have recovered from previous lows, with the 10-year Treasury yield rising 2.5 basis points. Two-year Treasury yields remain low, reflecting the almost certain 25 basis point rate cut already priced in. But uncertainty remains about the Fed's course of action beyond December, especially as the recent decline in inflation appears to be stalling.
