FxWirePro: USD/JPY comatose inside daily cloud, struggles for direction ahead of US PPI data

USD/JPY chart - Trading View 

USD/JPY was trading unchanged on the day at 110.43 at around 07:25 GMT, with session high at 110.47 and low at 110.31.

The pair remains pressured within the daily cloud, trades directionless after spinning top in the previous session.

Data released on Wednesday showed U.S. consumer price inflation cooled in July, dragging the dollar. USD/JPY closed 0.11% lower at 110.43. 

U.S. consumer price still remained at a 13-year high on a yearly basis, underpinning the Federal Reserve’s argument that inflationary pressures are likely to be transitory.

While labour market recovery is an important criteria for the Fed to dial back its asset-purchase programme and raise interest rates, it considers current inflationary pressures as transitory.

On the other side, global rating giant Fitch affirmed Japan's long-term foreign currency Issuer Default Rating (IDR) at 'A' with a negative outlook.

Technical analysis shows upside bias for the pair remains intact. Break above cloud will fuel further gains in the pair. 

Focus now on U.S. Producer Price Index (PPI) and Initial Weekly Jobless Claims for impetus.