FxWirePro: USD/JPY edges above 21-EMA, better-than-expected Tokyo core CPI data fails to impress JPY bulls

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.