FxWirePro: USD/JPY bulls meet strong resistance at 21-EMA, slips lower ahead of US CPI data

USD/JPY chart - Trading View 

USD/JPY was trading 0.09% lower on the day at 110.23 at around 12:20 GMT, greenback is losing some ground ahead of US inflation data.

The pair is struggling at 21-EMA which is offering stiff resistance at 110.37, decisive break above required for upside continuation.

The Delta variant is causing a surge in US COVID-19 cases, which have risen by 94% in the past two weeks, denting the USD.

Traders focus on Fed speak along with the US Consumer Price Inflation (CPI) data due later in the NY session.

Analysts expect the US Consumer Price Index figures to show a moderate drop of headline inflation to 4.9% but an increase of Core CPI to 4%. 

Major resistance lies at 21-EMA at 110.37, while major support aligns at 55-EMA at 109.80.

Analysis of GMMA indicator shows major trend is bullish, while minor trend is neutral. Pullback has bounced off 55-EMA support. Breakout above 21-EMA will fuel further gains.