USD/JPY Range Bound Prior to CPI
The USD/JPY is currently range bound but the CPI data could move the cross easily outside the range. The CPI represents the change in the price of goods and services purchased by consumers. Consumer prices account for a majority of overall inflation.
Technically the USD/JPY should drop as more confluence is on the bearish side. A rejection from the POC 111.45-55 below the red trend line should lead the pair down to 111.10, 110.95 and 110.71. However a bouce above 111.60 is bullish with 111.83 and 112.45 as targets.
W L3 – Weekly Camarilla Pivot (Weekly Interim Support)
W H3 – Weekly Camarilla Pivot (Weekly Interim Resistance)
W H4 – Weekly Camarilla Pivot (Strong Weekly Resistance)
D H4 – Monthly Camarilla Pivot (Very Strong Daily Resistance)
D L3 – Monthly Camarilla Pivot (Daily Support)
D L4 – Monthly H4 Camarilla (Very Strong Daily Support)
POC – Point Of Confluence (The zone where we expect the price to react – aka the entry zone)