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US Inflation was Hot in May - USD/JPY Cracks Resistance

The Consumer Price inflation grew at the rate of 0.4% in May, which was up from 0.3% in April, and beat forecast of a decline to 0.2%. 

(source: tradingeconomics)

The core reading came in at 0.3%, also beating forecast of 0.2%. April's reading was 0.2%.

The US Dollar gained across the board after the hot inflation data. USD/JPY for example rallied and popped the recent consolidation high of 120.14. However as we see a retreat from 102.20, we know it is still premature to call it a bullish breakout. A break above 102.30 might be needed to convince the markets of a bullish continuation, which would put the focus on the 102.80 high and key pivot at 103.


(usdjpy 4h chart 6/17)