- USD/JPY fails to hold gains above 20-DMA, slips lower from session highs at 107.29.
- The pair retreated from highs after US inflation data disappointed bulls.
- US headline CPI came in at a m/m increase of 0.2% in February as against 0.5% rise recorded in the previous month.
- Yen remains in demand on signs of risk aversion in the US equities. Further market expectations of an early taper from the BoJ continue to dwindle post BoJ minutes.
- US retail sales and PPI data will be closely eyed amid other minority reports.
- Technical indicators are neutral. Decisive break above 20-DMA could see further upside.
- Scope then for test of 107.48 (23.6% Fib retrace of 114.737 to 105.250 fall).
- On the downside, decisive break below 5-DMA at 106.49 could see test of 105.15 (major trendline support).
Support levels - 106.49 (5-DMA), 105.15 (trendline), 105
Resistance levels - 106.56 (20-DMA), 107, 107.48 (23.6% Fib)
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
