The USDJPY pair has fallen to its lowest trading level since September 26th, hitting 111.85, as the U.S dollar index comes under further pressure ahead of the release of key inflation data for the U.S economy.
Intraday trading sentiment surrounding the USDJPY is slightly bearish, as the pairs upside rallies continue to fail, while sellers are now pushing price lower, creating bearish lower daily time frame price-lows on the charts.
Today’s U.S inflation data is likely to be seen as key measure of the U.S dollars appetite for further gains, whilst a negative CPI headline figure is likely to be taken as very bearish for the U.S dollar index.
A sustained trading period below the 111.90 level should cement a further sell-off for the USDJPY pair, whilst a move above the 112.57 level should lead to further buying towards the 113 handle.
Key intraday technical support below the 111.90 level is located at 111.69 and the pairs key 200-day moving-average, at 111.40. Once below the 111.40 level, the 111 level comes into focus, as does the key 110.80 support zone.
To the upside, key intraday resistance is found at 112.25 and the former swing high, at 112.57. Once above 112.57, further intraday resistance is seen at 113 and 113.25.
