The concentration of the war between the US and North Korea continues to direct investors towards traditional safe havens such as the Japanese Yen. However, the revised US Dollar selling pressure following yesterday’s US Producer Price Index contribution has helped the parity decline to its lowest level since June 14th.
With today’s slide, the pair reversed over the 200-pips swing peak after the US Non-Farm Employment report, as investors will closely monitor US CPI data to be released today in the North American session. In the face of declining inflationary pressures, a soft US Consumer Price Index (CPI) data could hurt the Fed‘s expectation of additional interest-rate movements in 2017, and may lead to the continuation of the near-term downward trajectory of the parity.
Apart from US macro data, the talk of the Federal Reserve Chairman Robert Kaplan and Minneapolis Fed President Neel Kashkari from the FOMC will be closely watched.
The USD / JPY pair is currently trading at 109.14 with a loss of 0.05%.
Significant technical levels for USD / JPY
108.80 and 108.12 levels.