- USD/JPY fails to extend gains above 102.50 which is stiff resistance (10-DMA).
- Markets sentiment appears to have soured after mixed Chinese datasets.
- China’s consumer price inflation accelerated, but at its weakest pace in six months. CPI rose 1.8 percent y/y in July, slightly stronger than the 1.7 percent growth expected.
- PPI however, dropped from 2.6 percent in June to 1.7 percent last month versus a 2.0 percent fall predicted.
- Downside remains cushioned as the greenback remains strong near fresh weekly tops reached post-NFP report.
- Support on the downside seen at 5-DMA by 101.82, 101.56 (June 28 low) and then 101.
- Break above 10-DMA at 102.50 finds next major hurdle at 104.04 (20-DMA).
Recommendation: Good to go long on brekaout above 102.50, SL: 101.80, TP: 102.83/ 103/ 103.40/ 104
