FxWirePro: USD/JPY Daily Outlook

Chart - Courtesy Trading View 

USD/JPY was trading 0.28% higher on the day at 146.24 at around 05:25 GMT, outlook bullish. 

U.S. inflation data for September is also a key point of focus for price direction. Technical bias remains bullish.

US producer price inflation data is due later on Wednesday, and is expected to show that price headwinds for manufacturers persisted last month. 

Further, US consumer price inflation, the more closely-watched inflation gauge, scheduled for release on Thursday is expected to show inflation remained pinned near 40-year highs last month. 

Both readings, together with strong jobs data last week, are expected to give the Fed enough room to keep raising interest rates at a sharp pace. 

A resurgence of COVID cases in China keeps sentiment sour. Chinese inflation and trade data, due on Friday, will be watched for more cues on a potential economic recovery.

GMMA indicator shows major and minor trend are bullish. Price action is above major moving averages which are trending higher. 

Support Levels: 

S1: 145.64 (5-DMA)

S2: 144.36 (20-DMA)

Resistance Levels: 

R1: 146.34 (Upper BB)

R2: 147

Summary: USD/JPY trades with a bullish bias. The pair is on track to refresh yearly highs above 145.90.