USD/JPY retraced sharply last week and the rise from 115.55 is possibly finished at 122.01 resistance. Deeper fall is mildly in favor to 118.67 support after a break of 119.28 support initially this week. Break will target lower end of recent range of 115.55/121.84. In that case, we’d maintain that downside should be contained by 115.55 cluster support (38.2% retracement of 105.19 to 121.84 at 115.47) and bring up trend resumption. Above 122.01 would target 124.13 key resistance next.
With a fresh cross of 21 and 55 EMA to the downside, am expecting further decline. Also MACD, RSI and SSRC are signalling bearish momentum.
Later this week investors would be taking a close look at the USD CPI and Core CPI.