USD/JPY Remains Overbought Even as U.S. Data Fails to Impress

Japanese Yen Talking Points

The recent rally in USD/JPY appears to be losing momentum as fresh data prints coming out of the U.S. economy do little to boost bets for four Fed rate-hikes in 2018, but recent price action keeps the topside targets on the radar as the Relative Strength Index (RSI) climbs into overbought territory.

Image of daily change for major currencies

USD/JPY Remains Overbought Even as U.S. Data Fail to Impress

Image of daily change for USDJPY

The updates to the U.S. Consumer Price Index (CPI) showed the headline print climbing to 2.9% from 2.8% in May, with the core rate also advancing to 2.3% from 2.2% during the same period. However, separate figures from the Bureau of Labor Statistics (BLS) showed Real Average Hourly Earnings holding flat for the second consecutive month in June, while Real Average Weekly Earnings increased 0.2% after expanding 0.3% the month prior.

Heightening price pressures paired with signs of subdued wage growth may encourage the Federal Open Market Committee (FOMC) to strike a more balanced tone at the next meeting on August 1, and Chairman Jerome Powell Co. may strike a more balanced tone as

Article source: https://www.dailyfx.com/forex/fundamental/us_dollar_index/daily_dollar/2018/07/12/USDJPY-Remains-Overbought-Even-as-US-Data-Fail-to-Impress.html