Yen Weakens Despite Inflation Hitting Four-Decade High

Action Insight Daily Report 1-20-23

Yen Weakens Despite Inflation Hitting Four-Decade High

Yen weakens broadly in Asian session despite data showing that inflation hit a four-decade high. Speculations on any BoJ move should cool for a while, given that there is no meeting until March. There is room for Yen to correct lower to digest recent rally. Meanwhile, the Japanese currency is also the worst performer for the week, followed by Aussie and Loonie. Sterling is currently the best, followed by Swiss Franc. Dollar and Euro are mixed.

Technically, Gold's up trend from 1616.51 is still in progress despite being overbought. For now, further rise is expected as long as 1896.38 support holds. Next target is 161.8% projection of 1616.51 to 1786.83 from 1728.48 at 2004.05. Any rebound in Dollar could be capped if Gold's rally is continuing.

In Asia, at the time of writing, Nikkei is up 0.32%. Hong Kong HSI is up 1.00%. China Shanghai SSE is up 0.54%. Singapore Strait Times is up 0.55%. Japan 10-year JGB yield is down -0.0031 at 0.401. Overnight, DOW dropped -0.76%. S&P 500 dropped -0.76%. NASDAQ dropped -0.96%. 10-year yield rose 0.022 to 3.397.

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USD/JPY Daily Outlook

Daily Pivots: (S1) 127.13; (P) 129.35; (R1) 131.14; More...

USD/JPY is staying in range above 127.20 and intraday bias remains neutral. Outlook remains bearish with 133.61 support turned resistance intact. Break of 127.20 will resume larger fall from 151.93 to 121.43 fibonacci level next. On the upside, though, firm break of 133.61 will indicate short term bottoming and bring stronger rebound.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

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Economic Calendar
GMT Ccy Events Actual Forecast Previous Revised
21:30 NZD Business NZ PMI Dec 47.2 47.4 47.2
23:30 JPY National CPI Y/Y Dec 4.00% 4.40% 3.80%
23:30 JPY National CPI Core Y/Y Dec 4.00% 4.00% 3.70%
23:30 JPY National CPI Core-Core Y/Y Dec 3.00% 2.90% 2.80%
00:01 GBP GfK Consumer Confidence Jan -45 -41 -42
07:00 GBP Retail Sales M/M Dec 0.40% -0.40%
07:00 GBP Retail Sales Y/Y Dec -4.20% -5.90%
07:00 GBP Retail Sales ex-Fuel M/M Dec 0.40% -0.30%
07:00 GBP Retail Sales ex-Fuel Y/Y Dec -4.40% -5.90%
07:00 EUR Germany PPI M/M Dec -1.20% -3.90%
07:00 EUR Germany PPI Y/Y Dec 20.80% 28.20%
13:30 CAD Retail Sales M/M Nov -0.50% 1.40%
13:30 CAD Retail Sales ex Autos M/M Nov -0.90% 1.70%
15:00 USD Existing Home Sales M/M Dec 3.95M 4.09M