Post-US CPI weakness cracks key support at 129.50
The USDJPY fell over 2% on Thursday after US inflation data signaled that the Fed would further ease the pace of policy tightening, prompting sell-off of the US currency.
Fresh weakness retested Jan 3 low at 129.50, fully retracing 102.50/134.77 corrective upleg and shifting focus to the downside.
Bears see close below cracked psychological support at 130 as minimum requirement, while sustained break of 129.50 pivot (also top of rising weekly Ichimoku cloud) would confirm bearish signal and open way for continuation of larger downtrend from 151.94 (multi-decade high, posted on Oct 21) towards next target at 127.26 (50% retracement of 102.59/151.94 uptrend).
Daily Tenkan-sen (132.13) should keep the upside protected.
Res: 130.75; 131.51; 132.13; 132.87
Sup: 129.50; 129.00; 128.26; 127.49