Last week was very volatile, as US consumer inflation cooled off, falling below 8% which was the expectation, relieving some of the pressure from the FED to keep rising rates in a hectic manner as they have done this year. The USD crashed lower, which sent USD/JPY more than 800 pips lower.

Today it was a quiet session for the most part, as the post-CPI relief rally paused to start the new week. Equities are looking tentative with US futures keeping slightly lower while bond yields are higher on the day. That is keeping the dollar more bid, with the greenback also getting help from pushback remarks by Fed board member Waller.

USD/JPY H1 Chart – Will the 50 SMA Turn Into Support Now?

Buyers have pushed the price above 2 moving averages already

USD/JPY has been a notable gainer today as it pushed up by over 1% to be back above 140.00, with the high touching 140.80 before settling around 140.40-50 levels at the moment. The 20 SMA (gray) was broken early in the Asian session and it turned into support immediately. Now, we will see if the 50 SMA (yell0w) will turn into support after being broken.

USD/JPY 15 Minute Chart – MAs Turning Into Support

Placing our hopes on the 20 SMA to hold as support

On the 15 minute chart, moving averages were also acting as resistance, but buyers pushed above all of them and they turned into support eventually. Now, USD/JPY is being supported by the 20 SMA (gray) which we hope holds as support since we are long on this pair.

USD/JPY Live Chart