FXStreet (London) - Following better than expected US CPI data, USD/JPY has pushed on to post a weekly high at 102.23.

USD/JPY led higher by US inflation data

While the main act this week is undoubtedly the FOMC meet tomorrow, US CPI numbers led the way this afternoon, coming in better than expected

YoY CPI bettering expectations at 2.1%/2% and MoM 0.4%/0.2%. CPI ex Food and Energy also beat expectations too. However, both Housing Starts and Building permits missed forecasts and declined on previous.

The pair had had a choppy start to the days trading, climbing to post an overnight high at 102.02 before retracing into a range throughout the European session. However, US data gave the pair the impetus to crack on higher to post a high at 102.23.

Dating back to June 12th, the pair has faced resistance just above the 102 mark, but managed to get its head above the June 12th and 13th highs at 102.14. Spot has edged back from highs and is finding support at the 1H 200 SMA at 102.20.

USD/JPY Technicals

USD/JPY is up 0.36% on the day at 102.19, having previously posted a daily high at 102.26 and a low at 101.81. The hourly FXStreet OB/OS Index is showing overbought conditions, alongside the FXStreet Trend Index which is slightly bullish.

Meanwhile, daily RSI is in neutral territory at 45.59. Hourly 2-Standard Deviation Volatility Bandwidth is currently 38 pips, and has been expanding, while the ATR (14) is currently 6 pips. On a daily chart, 2-Standard Deviation Volatility Bandwidth is shrinking at 152 pips.

USD/JPY Levels

Current price is 102.20, with resistance ahead at 102.22 (Daily 100 SMA), 102.26 (Daily High), 102.28 (Daily Classic R2), 102.35 (Weekly High) and 102.46 (Daily Classic R3). To the downside we see next support at 102.19 (Hourly 200 SMA), 102.11 (Yesterday's High), 102.10 (Weekly Classic PP), 102.08 (Daily 20 SMA) and 102.06 (Daily Classic R1).

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