The USD to JPY rate has resumed surging higher after the BOJ meeting last night. On Wednesday this pair surpassed 155, today it broke above 158, as buyers keep pushing for 160. The GDP price index showed a jump in March, which was a signal that today’s PCE inflation wouldn’t be weak at least. The PCE price index leaned slightly on the strong side, which sent this pair further to the upside.

USD/JPY Chart H4 – MAs Keep Pushing It Higher

Short-period moving averages have been providing solid support for USD/JPY , which shows that the upside pressure is quite strong. The 20 SMA (gray) has been the ultimate support indicator on the H4 chart, while the 50 SMA (yellow) has taken over during the dips. Despite Japanese Finance Minister Sunichi Suzuki’s repeated verbal interventions regarding FX market monitoring, Yen’s depreciation persisted.

The core PCE increase for March was 0.32%, rounded to two decimal places, which exceeded expectations. Initially, there were whispers of a higher figure, possibly around 0.4% or even closer to 0.5%. However, the actual figure came in slightly lower than those speculations but still on the higher end of the anticipated range of 0.3%.

Fed’s PCE Personal Expenditure Report for March 2024

• March PCE core inflation came in at 2.8% year-on-year (YoY), surpassing the expected 2.7%. The previous figure was unrevised at 2.8%.
• Month-on-month (MoM) core PCE inflation stood at 0.3%, in line with expectations and unchanged from the previous month.
• Headline PCE inflation registered at 2.7%, slightly higher than the estimated 2.6%.
• MoM headline PCE was also at 0.3%, in line with expectations.

US Consumer Spending and Income for March:

• Personal income increased by 0.5%, meeting the estimated 0.5%. The prior month’s figure was 0.3%.
• Personal consumption rose by 0.8%, surpassing the estimated 0.6%. The previous month’s figure was 0.8%.
• Real personal spending, adjusted for inflation, saw a 0.5% increase, consistent with the previous month’s revised figure of 0.5%.

USD/JPY Live Chart