Lots of Japan data coming out starting at the bottom of the hour.
The Japan/Tokyo CPI data wil be released at the bottom of the hour (2330 GMT) followed by capital spending shortly thereafter (at 2350 GMT). What levels are in play technically?
Looking at the hourly chart above, the pair is moving up toward a cluster of resistance defined by swing levels, the 50% retracement, and a topside upward sloping trendline. Those levels come in between 112.71 and 112.78. We currently traded 112.65, not far from that resistance target. A move above should trigger buying (stops).
On the downside, a key area for bulls comes in at 112.18-27. A broken trend line and an upward sloping trend line come in that area. I would think, the buyers would give up on a fall back below.
Right now the buyers are more in control, but that cluster of resistance does loom not far ahead and it could stall the rally. Be aware.
