USD/JPY back below 104.00 post-CPI

USD/JPY has deflated below the 104.00 handle on Tuesday following in-line US inflation figures for the month of September.

USD/JPY surrenders gains on CPI

The pair has come down to the 103.90 area after headline consumer prices in the US economy have risen at an annualized 1.5% on a year to September, matching initial forecasts.

Further data saw consumer prices excluding Food and Energy costs rising 2.2% on a yearly basis, a tad below consensus for a 2.3% gain.

Spot met extra selling pressure in the wake of the releases although it manages to keep the current range around the 104.00 neighbourhood.

It is worth mentioning that JPY speculative net longs have retreated to the lowest level since early August during the week ended on October 11 and according to the latest CFTC report.

USD/JPY levels to consider

As of writing the pair is up 0.05% at 103.95 facing the immediate hurdle at 104.64 (high Oct.13) ahead of 107.48 (high Jul.21) and finally 107.80 (200-day sma). On the downside, a break below 103.18 (100-day sma) would open the door to 102.39 (20-day sma) and then 100.07 (low Sep.22).