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FxWirePro: USD/JPY rangebound above daily cloud, US Inflation eyed for impetus

Chart - Courtesy Trading View 

USD/JPY was trading 0.04% lower on the day at 134.89 at around 05:10 GMT, bias neutral.

The pair is extending range trade for the second consecutive session, traders preferring to remain on the sidelines ahead of the key US Consumer Price Index (CPI) on Wednesday.

A strong US jobs data triggered concerns about economic growth and aggressive tightening by the Fed.

Due to declining oil prices amid a temporary fix in supply worries and recession fears, the market participants have trimmed the US inflation forecasts.

Analysts expect the annual US CPI to slip lower to 8.7% compared with the prior release of 9.1%. 

Investors remain wary and will make a reassessment of the situation after the release of inflation figures.

Technical indicators support upside in the pair, stochs and RSI are biased higher, MACD is on verge of bullish crossover on signal line.

Major Support Levels: 

S1: 134.32 (5-DMA)

S2: 133.79 (55-EMA)

Major Resistance Levels: 

R1: 135.05 (21-EMA)

R2: 135.82 (20-DMA)

Summary: USD/JPY trades with a neutral bias with a slight bullish tilt. Major weakness only below daily cloud. Decisive break above 21-EMA will see more upside. 

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