As traders await the CPI data at the bottom of the hour (YoY 7.0% with core at 5.4% expected), the USDJPY remains confined and below its 100 and 200 hour moving averages (slightly bearish bias).
The 100 hour moving averages at 115.541. The 200 hour moving averages at 115.583. Getting above each of those and a swing area up to 115.64 would be needed to tilt the bias back in the favor of the buyers/bulls.
On the downside, the low in the Asian session today did stall against a rising trend line connecting lows from Monday and Tuesday. That trendline currently cuts across at 115.28 and would be a close level to get below to give sellers more confidence. After that the swing lows will be targeted at 115.21, 115.12 in the low from Monday's trade at 115.047.
The 38.2% retracement of the move up from the December 17 low cuts across also near the 115.12 level. Moving below that and staying below that level would give the sellers even more confidence.
US stocks are trading higher ahead of the number:
- Dow up 90 points
- NASDAQ up 53 points
- S&P is trading up 11 points
The US the 10 year yield is trading at 1.73%.
