USD/JPY Bullish Sequence Fizzles as U. of Michigan Fails to Impress

Japanese Yen Talking Points

The recent rally in USD/JPY appears to be sputtering ahead of the 2018-high (114.55) as the U. of Michigan Confidence survey does little to boost the economic outlook, and recent price action raises the risk for a larger pullback as the exchange rate fails to extend the series of higher highs lows from earlier this week.

Image of daily change for major currencies

USD/JPY Bullish Sequence Fizzles as U. of Michigan Fails to Impress

Image of daily change for usdjpy rate

USD/JPY struggles to hold its ground as the U. of Michigan Confidence survey narrows for the second month, with the index slipping to 98.3 from 98.6 in October, and signs of waning household sentiment may push the Federal Reserve to soften the hawkish outlook for monetary policy as it dampens the outlook for private-sector consumption, one of the biggest drivers of growth.

Nevertheless, key data prints on tap for the week ahead should keep the Federal Open Market Committee (FOMC) on track to implement higher borrowing-costs as the U.S. Consumer Price Index (CPI) is expected to climb to 2.5% from 2.2% per annum in September, while Retail

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/11/09/USDJPY-Bullish-Sequence-Fizzles-as-U-of-Michigan-Fails-to-Impress.html