USDJPY PERFORMING MINOR TECHNICAL CORRECTION
The US dollar has moved away from the worst levels of the day against the Japanese yen after sellers failed to break through the 112.00 support barrier during the European trading session. The reaction from US equity markets today and US CPI inflation data are likely to be the main directional drivers for the USDJPY pair. Sellers will once again attempt to break the 112.00 support level, while intraday buyers need to push price above bearish head and shoulders pattern neckline, at 112.55 level.
The USDJPY pair is strongly bearish while trading below the 112.00 level, key support found at the 111.60 and 111.10 levels.
If the USDJPY pair trades above the 112.55 level, buyers will likely test towards 112.90 and 113.55 resistance levels.