USD/JPY took a turn higher as Tokyo core CPI surprised to the downside (2.9% vs 3% exp), further pushing back expectations of BoJ policy normalisation – in terms of the timing of the next rate hike. Pair was last at 147.87 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.
Slight upside risks ahead
"Daily momentum is flat while RSI rose. Slight upside risks ahead. Resistance at 147.90, 149.40/70 levels (200 DMA, 50% fibo retracement of 2025 high to low). Support at 146.40 (21 DMA), 145.20 (50 DMA)."
"While political uncertainty (referring to PM Ishiba’s political career), rating concerns (dependent on fiscal health) and carry play is supportive of USDJPY, 'sell USD' trade can overwhelm. We acknowledged that a carry trade may be appealing but also warned that the appeal can erode if USD sell-off returns in a big way."
Related Articles
Investing in Clean Energy
TradingKey - Not so long ago, clean energy was relegated to a niche, a corner for subsidies, early markets, and greens. Now it's at the center of global economic thought. Governments, business, and consumers are driving a structural transformation from fossil fuels to renewables. The roofs are toppe
Investing in Luxury & Experiential Consumption
Niche assets like data centers, logistics, healthcare, and cold storage thrive on structural drivers, not traditional property cycles Specialized real estate benefits from secular trends like digitalization, demographics, and supply chain innovation, making demand resilient and less cycle-sensitive
Oracle’s FY2026 Q1 Preview: Will OpenAI Contract Spark a Broadcom-Like Stock Surge?
TradingKey - As analysts raise targets and expectations, could Oracle’s stock replicate the post-earnings rally seen at Broadcom following its OpenAI-related contract announcement?
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Fed to Cut Rates: All Asset Prices Up!
TradingKey - The Federal Reserve is almost certain to restart its interest rate cut cycle on 17 September this year. After in-depth research, we have concluded that cryptocurrencies, the broader U.S. stock market, and short-term U.S. Treasury bonds will all go up.
