The data released in Japan showed consumer price index (CPI) dropped for an eighth straight month. The headline figure remained unchanged at 0.1%, while, the core CPI dropped 0.4% y/y in October. However, the headline figure has rebounded from last month’s print of -0.5%, slightly better-than-estimates. The numbers and above data didn't give the Japanese yen a break from US dollar dominance as greenback still soaring all rivals.
The US dollar index hysteria was not done yesterday, as the index peeked further more today to new high at 102.11 causing USD/JPY to rally from 113.18, to fresh 8 months high 113.89. The first resistance level at 114.07 to be considered and breaking this point will expand gains into next resistance levels.
Key levels to watch: Weekly Pp 109.48
Trend: Bullish
Resistance: R1 114.07, R2 114.47, R3 114.77
Support: S1 113.13, S2 112.47, S3 111.95
Remark: With absence of economic news on USDJPY, price range S1 and R1. Traders are the key player today determining how far the pair will go.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.