Macroeconomic news coming from Japan were positive, as the Corporate Service Price Index was up 1.2% beating expectations while the US one disappointed. The USDJPY is trading at 111.05 slightly lower ahead of releasing its July inflation. Next week the BoJ is holding a 2-day meeting where it could easily report a change to its monetary policy which will lead to a collapse of the USDJPY.
The USDJPY pulled back to its trendline support at 111.10. A close above the 111.40 will push the pair higher. However, bearish momentum is likely if it stays under the trendline support 111.10 level, this could lead the pair towards the 110.15 area (200-period moving average) and 109.45 in extension.
Support: 110.15 109.45
Resistance: 111.40 112.15