USDJPY, EURUSD, and GBPUSD Analysis.
August 10 2022
Today’s US CPI for July could be a pivotal moment for the USD, as the forex market in our opinion is underestimating the resolve of the FOMC to bring US inflation under control.
The expectations for today’s release is that headline CPI drops to 8.7% from June’s 9.1%, while core inflation in July rises to 6.1% from Junes 5.9%
As long as USDJPY remains supported by 134.40, the risk will be for further gains to 135.60 resistance, and then 136.20.
Support is found first at 134.80 and then at the important pivot at 134.40, if 134.40 is broken you should expect further losses towards 133.60.
EURUSD remains stuck in its recent range with resistance seen at 1.0260 and then 1.0300.
Support will be found at 1.0180, which if broken would allow a drop to 1.0130
The GBPUSD is struggling to break and holding above 1.2100/20. Yesterday saw another failure. Although the subsequent selling pressure has yet to break below 1.2060.
Support remains at 1.2030 which if broken would allow for further losses to 1.1990 and possibly 1.1960 in an extended move.
However, if the GBP can break and hold 1.2120 the next target area would be 1.2160/70.