USD/JPY is trading at 110.11 level and a further trajectory seems undecided in the short term. Personally, I believe that the United States inflation data could be decisive. The pair is trapped within a sideways pattern, so we'll have to wait for a valid breakout from this formation before taking action.
The US inflation figures will be released tomorrow. The CPI (Consumer Price Index) could increase by 0.4% in August while the Core CPI may register a 0.3% rise. The Japanese Revised Industrial Production will be published in the morning and is expected to fall by 1.5%.
USD/JPY Symmetrical Triangle!
USD/JPY dropped to challenge the 109.96 weekly pivot point level after failing to reach the triangle's resistance. It's located below the 38.2% retracement level. We'll have to wait for a valid breakout from this triangle to get a fresh trading opportunity.
110.41 is seen as a static resistance. Making a valid breakout through this level may signal a larger upwards movement. The USD/JPY could invalidate the upside scenario only if it registers a valid downside breakout through the triangle's downside line and below 109.48.
Jumping and closing above 110.41 former high, the static resistance is seen as a potential buying opportunity.The material has been provided by InstaForex Company - www.instaforex.com