USDJPY Technical Analysis – We continue to range as US CPI looms | Forexlive

Fundamental
Overview

The USD erased the gains from
the better than expected NFP
report where hot wage growth figures triggered a slightly more hawkish
repricing in interest rates expectations and sent Treasury yields higher.

That wasn’t enough to lift
the greenback though and traders will now look forward to the next key events
including the US-China trade talks, the US CPI and the FOMC decision. The US
Dollar will need hawkish stuff to get a boost.

On the JPY side, the
currency remains weak almost across the board as the BoJ is said to reduce
its bond buying tapering plan. Other than that, the fundamentals have been
pretty stale as the central bank continues to wait for US-Japan trade deal and
the evolution of inflation.

USDJPY
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that USDJPY is consolidating between the 142.35 and 146.00 levels. We’ve
been ranging for quite some time as the market continues to wait for stronger
signals to pick a direction. For now, the target for the buyers remains the
148.32 resistance,
while the sellers will look for a break below the 142.35 support to extend the
drop into the 140.00 handle next.

USDJPY Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we have a support zone around the 144.32 level. This is where we can
expect the buyers to step in with a defined risk below the support to position
for a rally into the 146.28 level. The sellers, on the other hand, will look
for a break lower to pile in for a drop back into the 142.35 support.

USDJPY Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, there’s
not much else we can add here as the buyers will look for a bounce around the
support, while the sellers will look for a break. The red lines define the average daily range for today.

Upcoming
Catalysts

Today, we have the US-China trade talks in London. On
Wednesday, we have the US CPI. On Thursday, we get the latest US Jobless Claims
figures and US PPI. On Friday, we conclude the week with the University of
Michigan Consumer Sentiment report.