FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY was trading 0.19% lower on the day at 10:13 GMT, outlook remains bullish.

The pair is consolidating previous session's gains, as markets await US Retail Sales and Michigan CSI data.

Higher CPI and PPI data released earlier this week have bolstered the odds of a 1% rate hike by the Federal Reserve (Fed) in its upcoming monetary policy meeting later this month. 

Rising price pressures and advancing interest rates are strengthening the chances of recession and stoking the dollar's safe-haven bids.

US Retail Sales due later today is expected at 0.8% for June, higher than the prior release of -0.3%. While Michigan CSI is expected to remain subdued at 49.9, slightly lower than 50 in the prior month.

Technical indicators for the pair support a bullish bias. GMMA indicator shows major and minor trend are strongly bullish.

Major Support Levels: 

S1: 137.85 (5-DMA)

S2: 136.28 (20-DMA)

Major Resistance Levels: 

R1: 139.91 (Sept 98' high)

R2: 141.20 (Upper W BB)

Summary: USD/JPY was trading with a strong bullish bias. Scope for fresh multi-year highs above 140 handle.