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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InThe USD/JPY pair has reversed its recent gains, returning to key support levels despite a robust US Non-Farm Payrolls (NFP) report. Market participants are now shifting their focus toward the upcoming US Consumer Price Index (CPI) data to gauge the Federal Reserve's future interest rate path. Simultaneously, Bank of Japan (BoJ) Governor Kazuo Ueda indicated that price trends in April could serve as a decisive factor for potential rate hikes. This technical retracement places the pair at a critical daily trendline, where further direction depends heavily on inflation outcomes. Analysts suggest that a stronger-than-expected CPI could spark a bullish recovery for the dollar. Conversely, soft inflation data may increase pressure on the pair, potentially breaking the current support levels.