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August 11, 2021

Daily U.S. Session Watchlist: USD/JPY

 Uncle Sam is about to print its latest inflation numbers!


Will the event propel USD/JPY to its July highs?


Before moving on, ICYMI, today’s Asia-London session watchlist checked out WTI crude’s charts ahead of an oil inventory report release. Be sure to check out if it’s still a valid play!


And now for the headlines that rocked the markets in the last trading sessions:


Fresh Market Headlines & Economic Data:

U.S. Senate passes massive bipartisan infrastructure package

Westpac: AU consumer sentiment down but not out

German consumer prices rose strongly in July in line with forecasts

Melbourne extends COVID lockdown; ‘no jab, no job’ in Sydney

Virus weighs on Asian equities, FX; U.S. inflation in focus

Oil edges up towards $71 as US demand eases Delta fears

Upcoming Potential Catalysts on the Economic Calendar:

U.S. inflation reports at 12:30 pm GMT

U.S. EIA crude oil inventories at 2:30 pm GMT

FOMC member Raphael Bostic to give a speech at 2:30 pm GMT

U.S. Federal budget balance at 6:00 pm GMT

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.


What to Watch: USD/JPY

In case you were too busy finding out if Ross and Rachel are indeed dating IRL, then you should know that the U.S. is printing its latest consumer price index (CPI) reports today.



Word around is that we’ll see slower price growth in July, which should support the Fed members’ belief that a high inflation environment is transitory.

If we do see slower-than-expected inflation numbers, then Fed members would have more room to wait before they start pulling back their easy monetary policies.


USD/JPY bears could act on the divergence on the 1-hour chart and drag the dollar back to inflection points like 110.50 or 110.10.


Of course, it’s possible that the report won’t make a dent on tapering and/or tightening expectations in the markets.


If forex playas extend the dollar’s intraweek uptrends this week, then we could see USD/JPY pop up to the 111.00 or 111.50 previous highs.


Not sure where you can place your short-term stop losses or profit targets? Check out USD/JPY’s average volatility for clues!