USD/JPY chart on Trading View used for analysis
- USD/JPY slightly bid on the day, edges above 21-EMA resistance.
- The pair is trading at 109.76 at 0455 GMT, up 0.12% at the time of writing.
- JPY bulls were unimpressed from a better-than-expected Tokyo core CPI reading.
- Core consumer prices (includes oil but excludes food) in Tokyo rose 1.1 percent in January from a year earlier, beating the median estimate of a 0.9 percent increase.
- The headline number also ticked higher to 0.4 percent from 0.3 percent.
- Despite upbeat numbers, the inflation remains well below the BoJ's 2% target and unlikely to move the central bank to scale back the unprecedented stimulus any time soon.
- The signs of improved risk-appetite could be adding to the bearish tone around the Japanese yen.
- Technical studies are neutral to slightly bullish on the intraday charts. Major trend is bearish.
- Decisive breakout above 21-EMA could see further gains. Scope then for test of 61.8 % Fib at 110.77.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
