USD/JPY: eyes on US CPI for an attack on 100 handle, or maybe not

• USD/JPY: makes a base above prior Tenkan line, eyes on 100 handle.
• USD/JPY: markets shrug of geopolitical risks and look to US CPI.

USD/JPY has shown intentions for the 100 handle in Tokyo but can't catch a bid through 109.90 and instead consolidates with bulls ready to pounce awaiting the US CPI data. Currently, USD/JPY is trading at 109.90, up 0.14% on the day, having posted a daily high at 109.92 and low at 109.68.

Overnight, the US 10yr treasury yield climbed from 2.99% to 3.01% while the 2yr yields climbed from 2.51% to 2.53% making anther fresh ten-year high. despite the geopolitical concerns, traders made up their minds that Centra Bank divergence trumps such risk and the DXY was trading at around 93.10 for the most part of the US session and within the day's range of between 92.8410-93.4160, (new trend high).

Eyes on higher levels

With the Tenkan line left for dust and bulls stacked up above 109.50 support, the trend highs on the 110 where the 200- D SMA are up for grabs on a US CPI beat, (next stop Nov low & 61.8% at 110.85. So far, US stocks maintain form and look towards the 100-D SMAs in the DJIA and S&P 500. 

Preview for the key US CPI data - Nomura

USD/JPY levels

USDJPY: The momentum indicators are mixed

Valeria Bednarik, chief analyst at FXStreet explained that, at the time being, the short-term picture is bullish for the pair despite a limited upward momentum:

"Technical indicators in the 4 hours chart advanced above their mid-lines before losing their upward strength, holding in positive ground. In the same chart, the 100 SMA continues advancing alongside with an ascendant trend line, both today at in the 108.70/80 region, providing a relevant support in the case of a downward move."