FxWirePro: USD/JPY rangebound below 114 handle, focus on U.S. CPI data for impetus

USD/JPY chart on Trading View used for analysis

• USD/JPY is trading in a narrow range below 114 handle. Intraday bias remains neutral.
   
• Equity markets mostly higher, but UST yields retreated, with the benchmark yield for the 10-year note falling to 3.15%. 
   
• Data released early Wednesday showed Japan preliminary Q3 GDP fell by 0.3% in the three months to September after advancing 0.7% in the previous quarter. 
   
• The country's September Capacity Utilization fell to -1.5% m/m from 2.4% in the prior month. While, Industrial Production rose to -0.4% from -1.1% in the previous month.
   
• Yen largely muted post mixed data.  Focus on US CPI data along with Powells speech for further impetus.
   
• The pair maintains its positive tone and a decisive break above 114 is likely to see test of 114.55 (Oct 4 high) ahead of 114.74 (Nov 2017 high).
   
• We see some overbought pressures on momentum indicators, but with no major signs of reversal we expect the bullish momentum to continue.
   
• On the flipside, close below 5-DMA could see weakness till 21-EMA at 113.17.

Support levels - 113.88 (5-DMA), 113.21 (21-EMA), 113

Resistance levels - 114.55 (Oct 4 high), 114.74 (Nov 2017 high), 115

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.