The USDJPY continues to keep both buyers and sellers engaged in a tug-of-war. After the CPI data release, the price fell from just above the 200-bar moving average (MA) on the 4-hour chart at 153.79 to briefly break below the 100-bar converged MA on the 4-hour chart and the day 200. MA. However, none of these technical levels could generate a significant move during the minor breakouts.
Currently, the price has settled near the middle of these levels at 152.43. This back and forth action keeps both sides in play, although the overall tilt is still up. Sellers had an opportunity to drive the price lower after breaking the 200-day MA but failed to sustain the move.
Meanwhile, yields have recovered from earlier lows, with the 10-year Treasury yield rising 2.5 basis points. The 2-year yield is still lower, reflecting a 25-basis-point rate cut that was almost certain to be priced in. However, there is uncertainty about the Federal Reserve's course of action beyond December, particularly as the recent decline in inflation appears to be stalling.
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