- USD/JPY down over 0.2 pct in Asian trade today, remains capped below daily cloud top at 111.82.
- JPY bulls buoyed following the release of solid inflation figures released out of Japan earlier today.
- Japanese inflation rises at a fastest pace since Apr 2015, headline CPI rose 0.4% year-on-year in April against a 0.2% rise in March.
- Somewhat less bullish comments from St. Louis Fed President Bullard keeps USD upside in check.
- Fed’s Bullard said US macro data have been relatively weak, on balance, since March rate hike.
- Momentum studies for the pair are neutral, we see lack of clear directional bias.
- Focus now on US GDP, core personal consumption expenditure and durable goods orders data.
Support levels - 111 (May 19 low), 110.61 (23.6% Fib of 118.662 to 108.130 fall), 109.75 (200-DMA & trendline)
Resistance levels - 111.82 (cloud top), 112, 112.15 (38.2% Fib), 112.42 (20-DMA)
Recommendation: Wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at 4.56719 (Neutral), while Hourly JPY Spot Index was at 76.0489 (Slightly bullish) at 0345 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
