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FxWirePro: USD/JPY extends range trade, focus on key US inflation data amid hawkish Fed bets

Chart - Courtesy Trading View 

USD/JPY was trading 0.07% lower on the day at 134.96 at around 04:30 GMT, bias neutral.

The pair is extending range trade for the third consecutive session, hovers above daily cloud.

Traders preferring to remain on the sidelines ahead of the key US Consumer Price Index (CPI) due later on Wednesday.

Risk-off escalates ahead of US Inflation data, volatility likely to continue into the release. 

US CPI is expected to ease to 8.7% from 9.1% on YoY, as well as the CPI ex Food & Energy which is likely to rise from 5.9% to 6.1%.

Technical indicators support upside in the pair, stochs and RSI are biased higher, MACD is on verge of bullish crossover on signal line.

Major Support Levels: 

S1: 134.56 (5-DMA)

S2: 133.83 (55-EMA)

Major Resistance Levels: 

R1: 135.05 (21-EMA)

R2: 135.71 (20-DMA)

Summary: USD/JPY trades with a neutral bias with a slight bullish tilt. Major weakness only below daily cloud. Decisive break above 21-EMA will see more upside. 

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