USD/JPY nudges back to 156.00 level as we await US CPI showdown

This is one dollar pair that has been rather stubborn despite the fact that the greenback has been a little softer elsewhere. So, if USD/JPY is also nudging lower now, that’s a slight concern for the dollar in general. For now, the moves are relatively light on the day with the dollar trailing slightly across the board.

USD/JPY itself is making its way back towards its 100-hour moving average (red line) at 155.99. Drop below that and the near-term bias switches back to being more neutral. That will open up some room for a drop back towards 155.00 potentially, depending on how things play out with the US CPI data.

One thing to note is that buyers have been huffing and puffing to try and get the pair higher but they are going up against the tide of falling yields and a softer dollar as of late. Thus, if the data later gives more reason for that tide to turn into a storm, we might see USD/JPY bulls finally reach a point of exhaustion. But we’ll see.