FxWirePro: USD/JPY rangebound ahead of US inflation data

Chart - Courtesy Trading View 

USD/JPY was trading in a narrow range with session high at 125.56 and low at 125.10 at around 05:20 GMT.

The major was consolidating previous session's gains and bias remains bullish, scope for further upside.

Volatility likely to remain as investors await the release of the US Consumer Price Index (CPI) data later in the NY session.

The yearly US Consumer Price Index (CPI) is expected to print at 8.5%, much higher than the prior figure of 7.9%. 

Core Consumer Price Index will likely increase by 0.47% in March, taking the year-on-year inflation rate higher by 20 basis points to 6.6%.

Higher US inflation print will force the Fed for a more aggressive tightening of monetary policy. The Fed has already announced seven interest rate hikes this year.

Technical bias for the pair is strongly bullish. The major is extending its bullish streak for the sixth consecutive week.

Minor resistance lies at 125.85 which is 2015 high. Break above will see the major at fresh multi-year highs.