{"id":433573,"date":"2026-07-13T15:33:04","date_gmt":"2026-07-13T08:33:04","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/usd-jpy-remains-rangebound-above-the-160-50-support-as-traders-await-the-us-cpi-report-433573\/"},"modified":"2026-07-13T15:33:04","modified_gmt":"2026-07-13T08:33:04","slug":"usd-jpy-remains-rangebound-above-the-160-50-support-as-traders-await-the-us-cpi-report","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/usd-jpy-remains-rangebound-above-the-160-50-support-as-traders-await-the-us-cpi-report-433573\/","title":{"rendered":"USD\/JPY remains rangebound above the 160.50 support as traders await the US CPI report"},"content":{"rendered":"
\n

FUNDAMENTAL OVERVIEW<\/a><\/p>\n

\u00a0<\/p>\n<\/p>\n

USD:<\/p>\n

The US dollar has been broadly stronger since last week following renewed
\n US-Iran escalations. The traffic in the Strait of Hormuz has once again come to
\n a halt and oil prices started to rise considerably. <\/p>\n

This situation triggered a hawkish repricing in interest rate expectations with
\n chances for a rate hike in July rising back to 33% and the total tightening in
\n 2026 to 39 bps. This week, traders will focus on US-Iran headlines, the US CPI
\n report tomorrow and Fed Chair Warsh testimony. <\/p>\n

Given the escalation in the Middle East, an in line or soft CPI tomorrow
\n might not have the same effect it could have had without the renewed
\n geopolitical risk. Nonetheless, we could see the risk sentiment improving with some
\n minor dovish repricing. <\/p>\n

A hotter than expected CPI, on the other hand, will likely trigger strong risk
\n off across the board on higher chances of a rate hike already in July and the
\n negative growth outlook stemming from the Middle East situation. <\/p>\n

Given these risks, we can expect the market to be either rangebound or
\n leaning on the defensive side heading into tomorrow\u2019s CPI release.<\/p>\n

JPY:<\/p>\n

On the JPY side, not much
\n has changed fundamentally other than the renewed US-Iran escalation. The
\n Japanese officials threat to target speculators with stealth interventions though
\n has helped to slow down the depreciation. <\/p>\n

The focus remains on the US
\n CPI report tomorrow which could give the USD\/JPY pair a boost in case the data
\n surprises to the upside or lead to a bigger pullback if the data comes out
\n lower than expected.<\/p>\n

\u00a0<\/p>\n

USDJPY TECHNICAL
\n ANALYSIS \u2013 DAILY TIMEFRAME<\/p>\n<\/p>\n

On the daily chart, we can
\n see that USDJPY<\/a>is now consolidating above
\n the 160.50 support zone. From a risk management perspective, the buyers will
\n continue to have a better risk to reward setup around the support to keep
\n targeting new highs. The sellers, on the other hand, will look for a break to
\n pile in for a drop into the major upward trendline around the 158.00 handle. <\/p>\n

USDJPY TECHNICAL
\n ANALYSIS \u2013 4 HOUR TIMEFRAME<\/p>\n<\/p>\n

\n

On the 4 hour chart, we can
\n see we have a minor support zone around the 161.50 level where the price got rejected
\n from several times in the past days. If we get another pullback, we can expect
\n the buyers to step in around the support to keep targeting new highs, while the
\n sellers will look for a break to extend the pullback into the 160.50 support
\n next.<\/p>\n

USDJPY TECHNICAL
\n ANALYSIS \u2013 1 HOUR TIMEFRAME<\/p>\n<\/p>\n

On the 1 hour chart, there\u2019s
\n not much else we can add here as from a risk management perspective, the buyers
\n will have better risk to reward setups around the key supports. The red lines
\n define the average daily range<\/a> for today. <\/p>\n

UPCOMING CATALYSTS<\/p>\n

Today<\/a>, we have Fed\u2019s Waller
\n speaking on the Economic Outlook which could offer some further information on
\n their reaction function. Tomorrow, we get the US CPI report and Fed Chair Warsh
\n testimony. On Wednesday, we have the US PPI report and the BoC rate decision.
\n On Thursday, we get the US Retail Sales and Jobless Claims data. On Friday, we
\n conclude the week with the University of Michigan Consumer Sentiment survey. <\/p>\n<\/p>\n

This article was written by flfeaa2662d774455a8d50fa77b791ed5f at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

FUNDAMENTAL OVERVIEW \u00a0 USD: The US dollar has been broadly stronger since last week following renewed US-Iran escalations. The traffic in the Strait of Hormuz has once again come to a halt…<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-433573","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=433573"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/433573\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=433573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=433573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=433573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}