USDJPY eases from 110 on weak US CPI; 10SMA holds for now
The pair eased after touching 110 barrier on weaker than expected US CPI but dips were so far contained by 10SMA (109.38).
Holding above 10SMA keeps bulls intact for renewed attack at psychological 110 barrier and another key barrier at 110.16 (200SMA).
Strong signal of bullish continuation requires break and close above 110.00/16 pivots, to open targets at 110.48 (02 Feb high) and 110.87 (Fibo 61.8% of Nov/Mar 114.73/104.63 fall).
However, risk of break below 10SMA and further easing exists, as daily RSI and 14-d momentum turned lower, signaling that bulls might be running out of steam.
Today’s close will be in focus, as loss of 10SMA would risk retest of key near-term support and higher base at 108.70 zone, break of which would generate stronger bearish signal on confirmation of daily double-top.
Res: 110.03; 110.16; 110.48; 110.87
Sup: 109.38; 108.99; 108.70; 108.58