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Tokyo CPI overview

Late Thursday at 23:30 to 23:50 GMT will see a slew of data from Japan, including the Tokyo Consumer Price Index, Japan’s Unemployment Rate, FOreign stock and bond investment to September 21st, as well as Japanese Retail Trade figures for August, but the key reading ahead of Friday’s market session will be the Tokyo CPI at 23:30 GMT, with the annualized reading for September expected to hold steady with the previous reading at 0.9%.

The majority of indicators due today are exacted to hold steady or come in relatively close to their previous readings, and little reaction could come from anything except a large unexpected change in the Tokyo inflation reading; the Tokyo CPI reading is used as a bellwether of the national figure, which is released several weeks after the Tokyo read, but with the USD/JPY already trouncing up into new highs, Dollar bulls could be waiting for very little  impetus to continue bidding into Friday’s Asia market session.

How could it affect the USD/JPY?

The USD/JPY remains well-bid through the markets heading into the end of the week, and anything except a total blow-out in the headline readings today could easily see the Greenback surge continue, and as FXStreet’s own Valeria Bednarik noted: “the pair holds near its daily high ever since reaching it, somehow suggesting that buyers are willing to keep pushing it higher. A strong static resistance area comes at 113.90, as the pair topped right below the level several times by the end of 2017. Technical readings in the 4 hours chart favor another leg higher, as technical indicators extended their advances within positive territory, with the RSI near overbought readings, and the pair further above bullish moving averages.”

Support levels: 113.20 113.80 112.45    

Resistance levels: 113.50 113.90 114.40

Key notes

USD/JPY analysis: at a brink of the yearly high

Dollar Bulls are BACK in Control

USDJPY Analysis: If it’s gonna stall..it’s gonna need to stall now

About the Tokyo CPI

The Tokyo Consumer Price Index released by the Statistics Bureau is a measure of price movements obtained by comparison of the retail prices of a representative shopping basket of goods and services, excluding fresh food. The index captures inflation in Tokyo. The purchase power of JPY is dragged down by inflation. Generally a high reading is seen as positive for the JPY.