The USD initially fell after U.S. PPI data came in softer than expected but has since rebounded as selling momentum faded. The weaker inflation print gives the Fed additional justification to cut rates if policymakers remain hesitant, though inflation is still running above the 2% target—even if it has now slipped back below 3%.Treasury yields moved lower, led by the short end. The 2-year yield is at 3.533%, down 0.9 basis points, while the 10-year yield is lower by 0.4 basis points at 4.0703%, not far from Monday’s low at 4.038%. Last week, the 2-year yield touched 3.466%. With the Fed funds target currently at 4.50%, markets are already pricing in a substantial degree of easing ahead.Meanwhile, mortgage market data showed some relief for borrowers. The average 30-year fixed mortgage rate dropped to 6.49% from 6.64%, helping drive a 9.2% increase in mortgage applications this week.Looking at the US stock indices, Dow industrial average is now in positive territory by 8 points. NASDAQ index is up 115 points, and the S&P index is up 31 pointsShares of Oracle are now up 33%. Chips stocks are higher:Broadcom is up 3.07%Nvidia is up 3.17%AMD is up 4.47%Looking at some of the major currency pairs:EURUSD: The pair briefly pushed back above its 100-hour moving average at 1.17114, extending to a session high of 1.1726, just shy of the 1.1730–1.17419 ceiling from August. However, the move stalled, and the price has since slipped back below the 100-hour MA, putting focus once again on the 200-hour moving average at 1.16918. Earlier in the day, sellers tried to break that level but failed to sustain momentum. For buyers to maintain a bullish bias, defending the 200-hour MA is now the key line in the sand.USDJPY: The pair dropped to a low of 147.08 after the softer PPI data, pulling away from the 100- and 200-hour moving averages clustered between 147.676 and 147.73. After bottoming near 147.09, the price rebounded to 147.47, with a corrective high so far at 147.58. From a technical standpoint, as long as the pair holds below the moving average confluence, sellers retain the upper hand. That said, the broader picture shows USDJPY still trading within the choppy range established since early August, leaving directional conviction limited for now. This article was written by Greg Michalowski at investinglive.com.