USD/JPY: US Core PCE and UST Yields will be bigger drivers in the near term – OCBC

The USD/JPY pair is set to take cues from US Core PCE data and UST Yields, economists at OCBC Bank report.

Potential rising wedge in the making

“Bullish momentum on daily chart intact while RSI shows signs of falling from overbought conditions. Potential rising wedge in the making but apex still a distant away.”

“US Core PCE, UST yields will be bigger drivers of USD/JPY in the near term.”

“We are biased to sell rallies.” 

“Resistance at 135.40, 136.80 (38.2% fibo retracement of October high to January low).”

“Support at 133.20 (23.6% fibo), 132.30 (21-DMA).”

See – US Core PCE Preview: Forecasts from eight major banks, meaningful acceleration