USD/JPY Rate Outlook Mired by Lower Highs, Lackluster U.S. CPI

Japanese Yen Talking Points

USD/JPY slips to a fresh monthly-low (111.97) amid the recent rout in risk appetite, and the exchange rate may stage a larger correction over the remainder of the week as it extends the series of lower highs carried over from the previous week.

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USD/JPY Rate Outlook Mired by Lower Highs, Lackluster U.S. CPI

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The fresh updates to the U.S. Consumer Price Index (CPI) have done little to prop up USD/JPY as the headline reading narrows more-than-expected in September, with the figure slipping to 2.3% from 2.7% per annum the month prior.

A deeper look at the report showed the core rate of inflation also falling short of market expectations as the gauge held steady at 2.2% for the second consecutive month, and signs of easing price pressures may start to sway the outlook for monetary policy as the development highlights a limited threat for above-target inflation.

The recent batch of lackluster data prints may force the Federal Open Market Committee (FOMC) to soften its hawkish tone especially as President Donald Trump warns that

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/10/11/USDJPY-Rate-Outlook-Mired-by-Lower-Highs-Lackluster-US-CPI.html