Weakening Yen Trend May Be History as CPI Print Slams Dollar
- Dollar-yen tumbles to test key technical support level
- Move will ease pressure for further interventions from Japan
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The end of a torrid period for the yen looked tantalizing close Friday as the US inflation report pushed the currency to the brink of breaking its weakening trend against the greenback.
Dollar-yen has tumbled about 4% since its Wednesday close to a cluster of key support levels just above 140, including its 2022 uptrend. A breach would open up the door for further gains for the Japanese currency -- still the year’s worst performer among Group-of-10 peers -- and ease pressure on the government to intervene again to prop it up.