USD/JPY consolidates after earlier nudge higher, awaits US CPI data

The pair caught a bid in Asia trading earlier today, following remarks from BOJ governor Ueda. He failed to provide any clues about an imminent policy change next week and that sort of disappointed yen bulls a little. USD/JPY moved up from 146.90 to 147.30-40 levels in the aftermath and has been stuck around there since:

It looks like traders are getting comfortable in consolidating price action for now. All before making their next move based on what the US CPI data has to offer later in the day.

In the bigger picture, the 100-day moving average at 147.65 will be a key resistance point to watch for USD/JPY. And in gauging the near-term bias, the 100-hour moving average – now seen at 147.75 – will also be one to watch. As such, the region around 147.65-75 will be crucial in determining whether sellers can maintain their stranglehold on the recent downside momentum.

As for key support levels to watch, the 38.2 Fib retracement level at 146.82 is a notable one on the daily chart. That comes before minor support and bids layered closer to 146.50 and then the 200-day moving average at 146.23.

Those are the key levels to watch in the technical play-by-play for USD/JPY this week.

This article was written by Justin Low at www.forexlive.com.