USD/JPY: range trading persists, US inflation data awaited

Valeria Bednarik FXStreet

USD/JPY Current price: 112.43

The USD/JPY pair trades marginally lower daily basis, still confined to a tight intraday range, yet at the lower end of the weekly one, on broad dollar's weakness and as Japanese data released overnight came in-line with market's expectations. The Corporate Goods Price Index rose by 0.3% on the month in September, posting also an annualized gain of 3%, both of which matched median analyst forecasts, and slightly better than August numbers. US data just released helped the greenback only modestly, as investors wait for key speeches from ECB's Draghi and a couple of Fed's officers, included Jerome Powel, one of Trump's candidates to replace Yellen next February. In the meantime, the pair has little to offer from a technical perspective, still neutral according to the 4 hours chart, in where technical indicators have been hovering around their mi-lines pretty much since the week started, whilst the price holds right below its 100 SMA. The pair however, is holding above the 112.00 level, the 23.6% retracement of its latest bullish run, and the immediate support. Seems unlikely the pair can break below it this Thursday, as the dollar is somehow stronger, while key US data will be released on Friday. Still, a break below the mentioned Fibonacci support should lead to a steeper slide, with room for a test of 111.20 later on the day.

Support levels: 112.00 111.60 111.20

Resistance levels: 112.65 113.00 113.45

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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