USD/JPY jumps after US CPI

By FXstreet.com | Updated July 30, 2014 AAA

FXStreet (Córdoba) - The USD/JPY jumped and hit fresh daily highs at the beginning of the American session after data showed US consumer inflation rose at a faster pace in May.



US consumer inflation index rose 2.1% YoY in May, while core CPI hit 2.0%, matching the Fed target. On the other hand, housing starts dropped more than expected, leaving room for the Fed to continue withdrawing monetary stimulus at at a moderate pace.



As for the USD/JPY, the pair climbed back above 102.00 as the greenback gains on the data, hitting a 6-day peak of 102.18 before slowing. At time of writing, the USD/JPY is trading at the 102.15 zone, recording a 0.32% gain Tuesday.



USD/JPY technical levels



In terms of technical levels, the USD/JPY could find next resistances at 102.20 (100-day SMA), 102.38 (Jun 11 high) and 102.56 (Jun 10 high). On the flip side, supports are seen at
101.80 (Jun 17 lowl), 101.60 (Jun 12 low) and 101.54 (200-day SMA).



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