Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

USD/JPY higher ahead of FED decision

yen-dollarOn Wednesday US dollar advanced against the Japanese yen ahead of the conclusion of Federal Reserve Banks meeting later today. This upward movement, according to experts, could be a signal that the central bank might announce either the tapering, or the exit of its asset purchases.

USD/JPY pair rose to 95.52 or by 0.18% in Asian session, after which consolidation followed at 95.25. Support was likely at last Thursdays low, 93.80, while resistance was to be encountered at Fridays high, 95.81.

On Tuesday the Labor Department said that US Consumer Price Index (CPI) increased by 0.1% in May on a monthly basis, below the expected 0.2% rise, while in April the indicator dropped by 0.4%. Core Consumer Price Index (CPI) also increased in May, by 0.2% on a monthly basis, meeting expectations and accelerating in comparison with Aprils data, when the index recorded a 0.1% rise.

Additionally, US Housing Starts rose in May to 0.914 million units, while a month ago their number showed 0.856 million, as revised data said. On the other hand, Building Permits decreased in number during May to 0.974 million units from a revised 1.005 million units in April.

Yesterdays economic data from the United States confirmed a possible improvement in worlds largest economy, which could give FED room to scale back easing. Some experts forecast such action as soon as late third quarter of this year.

Meanwhile, earlier today it was reported that Japans seasonally adjusted deficit on its Trade Balance widened to 0.821 trillion JPY in May from 0.703 trillion JPY a month ago. This was the 11-th consecutive month of trade balance deficit. Japans export rose more than projected in May, as weaker yen favored oversea sales. Sales figures abroad rose by 10% in May 2013, compared to May 2012, marking the strongest increase rate since 2010. At the same time, import increased by 10%, due to rising import costs and demand for imported energy, because of the shut down nuclear reactors.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News