FxWirePro: USD/JPY extends break above 21-EMA, dollar opens the week on a firm footing

USD/JPY chart - Trading View 

USD/JPY was trading 0.24% higher on the day at 110.14 at around 07:13 GMT, dollar opens the week on a firm footing.

The pair is extending gains for the 2nd straight session as the dollar remains bid ahead of US inflation data.

U.S. consumer price data scheduled for release on Tuesday is expected to show core inflation easing slightly to 4.2%.

USD/JPY is extending trade in a 'Symmetric Triangle' pattern. Price action is extending sideways along 55-EMA support.

The pair is on track to test cloud top and major trendline resistance at 110.19. Decisive break above will buoy bulls in the pair.

Cautious mood likely to keep upside limited ahead of next week's FOMC decision. Gains are likely to be capped at cloud top.

Analysts expect the Fed to refrain from tapering their bond-buying scheme next week but to make a move later in the year. 

Apart from inflation figures, US retail sales and consumer sentiment data will also be in focus for impetus.

Major Support Levels: 

S1: 109.98 (200H MA)

S2: 109.87 (55-EMA)

S3: 109.42 (110-EMA)

Major Resistance Levels: 

R1: 110.20 (Converged cloud top and major trendline resistance)

R2: 110.44 (Sept 8th high)

R3: 111 (psychological mark)

Summary: USD/JPY trades with a neutral bias. Decisive break above 'Symmetric Triangle' top will change near-term bias.