USDJPY Chart Technical Outlook is likely to be capped below 144.00 ahead of the US CPI release
The US Dollar bounced up on Monday and maintained a mild positive tone on Tuesday. the broader trend, however, remains bearish. Investors are reluctant to take excessive risks ahead of tomorrow´s US CPI data.
Consumer inflation is expected to have remained steady at 0.2% in August, with the yearly index down to 2.6%. Any further cooling on the CPI would rekindle speculation about a 50 bp cut by the Fed next week and boost selling pressure on the USD.
In this context, I expect the pair to consolidate below 144.00 ahead of tomorrow´s data. Above here, the target would be the channel top, at 145.60. Supports are 141.70 and 140.50.
