FxWirePro: USD/JPY opens the week on a bullish note, dollar firm ahead of US inflation data

Chart - Courtesy Trading View 

USD/JPY was trading 0.29% higher on the day at 115.81 at around 03:45 GMT.

After seeing some profit taking on Friday after payrolls report failed to meet the market's lofty expectations, the major is extending gains on the day.

USD/JPY has snapped a three-day bearish streak as markets remain optimistic about the US inflation data. 

Traders bet U.S. inflation data and appearances from several Federal Reserve officials would bolster the case for higher interest rates.

U.S. inflation figures are due on Wednesday, with headline CPI expected to climb to a red-hot 7% year-on-year.

The report is likely to show core inflation climbing to its highest in decades at 5.4% and usher in a rate rise as soon as March.

A raft of Fed speech is due this week, including Chair Jerome Powell and Governor Lael Brainard who are set to confirm their nominations as chair and deputy chair at the Fed.

Major Support Levels: 

S1: 115.47 (200H MA)

S2: 115

S3: 114.92 (21-EMA)

Major Resistance Levels: 

R1: 115.86 (5-DMA)

R2: 116

R3: 116.66 (88.6% Fib)

Summary: USD/JPY trades with a bullish technical bias. Pullback has bounced off 200H MA support. The pair is extending gains for the 6th consecutive week. Bulls on track to test 88.6% Fib at 116.66.