Chart - Courtesy Trading View
USD/JPY was trading 0.08% lower on the day at 114.53, after closing 0.57% lower in the previous session.
Data released overnight showed U.S. consumer prices rose at their fastest rate in nearly 40 years.
CPI printed at 7% month-on-month, slightly higher than forecast, while the increase in year-on-year CPI was the biggest since June 1982.
The Fed in two weeks the Fed holds its first meeting of the year and rate outlook is seen unchanged by the CPI data.
The Federal Reserve has already flagged higher rates this year and a shrinking balance sheet to curb it. Fed funds futures have already priced three hikes in 2022.
Focus also on the Fed Governor Lael Brainard appearance at Congress for a hearing into her nomination as deputy chair.
Price action has slipped below 200H MA. Stochs show bearish rollover from overbought levels. MACD is on verge of bearish crossover on signal line.
Major Support Levels:
S1: 114.53 (76.4% Fib)
S2: 114.10 (55-EMA)
Major Resistance Levels:
R1: 114.85 (21-EMA)
R2: 115.03 (5-DMA)
Summary: USD/JPY trades with a bearish bias, Scope for test of 55-EMA at 114.10.
