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  • Japan national CPI matched 0.5% forecasts whereas core CPI crossed market expectations.
  • Geopolitical news reports may gain more attention due to lack of economics on hand and Good Friday holidays at major markets.

USD/JPY trades near 112.00 during early Friday after Japan’s headline inflation number matched estimations with core figure beating the forecasts.

Japan’s March month national consumer price index (CPI) (YoY) matched expectations of 0.5% increase versus 0.2% earlier while national CPI ex-fresh food, also known as national core CPI, ticked up from 0.7% forecast and prior to 0.8%. It should also be noted that national CPI ex-food and energy remained unchanged at 0.4%.

Even after recovering most of the losses on the back of upbeat retail sales print by the US, the USD/JPY pair remained on the downside as investors chose to avoid taking risks ahead of the long weekend including Good Friday break. It can also be said that geopolitical news reports from North Korea and Libya also supported safe-havens.

With the Japanese markets open amid close at various global bourses, traders may observe developments surrounding Japan and risk-on for fresh impulse as the economic calendar is silent for the rest of the day.

USD/JPY Technical Analysis

Unless clearing the region between 111.80 and 112.15 comprising highs marked Since March 05, lesser moves are expected to take place. In case of a downside break, 200-day simple moving average (SMA) near 111.55, followed by 111.30 and 111.00, could please sellers ahead of challenging them with 100-day SMA level near 110.80.

Alternatively, an upside clearance of 112.15 can escalate the quote to 112.30 but a downward sloping trend-line since October 2018 may question the bulls around 112.85 which if broken could print 113.20 and 113.80 on the chart.