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FxWirePro: USD/JPY fails at daily cloud resistance, outlook turns bearish ahead of FOMC meet next week

USD/JPY chart - Trading View 

USD/JPY was trading 0.13% lower on the day at 109.52 at around 06:10 GMT, bias has turned bearish.

U.S. data released on Tuesday showed core consumer price index (CPI) grew 4% year-on-year and 0.1% month-on-month in August. While CPI grew 5.3% year-on-year and 0.3% month-on-month respectively.

Less-than-expected rise in US inflation last month created uncertainty about the timing of the Federal Reserve's tapering of asset purchases.

Investors now look to the Fed’s latest policy decision, due to be handed down next week, for further timeline clues.

Meanwhile, USD/JPY price action has seen rejection at daily cloud and 'Symmetric Triangle' top resistance.

The pair is extending previous session's weakness, has slipped below 21-EMA and daily cloud. Technical indicators are turning bearish. RSI has turned south and has slipped below 50 mark.

The pair is on track to test trendline support at 109.20. Breach below will open downside. Next major support lies at 38.2% Fib at 108.19 ahead of 200-DMA at 108.02.
 

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