• Broad US dollar weakness across the board weighed on the USD/JPY pair.
  • Falling US Treasury yields and demand for riskier assets keep the USD/JPY subdued.
  • USD/JPY Technical Outlook: Remains upward biased ahead of the US CPI for January.

On Wednesday, the USD/JPY retreats from weekly highs ahead of the release of US inflation figures, alongside the slip of US Treasury yields. At the time of writing, the USD/JPY is trading at 115.44, down 0.08%.

Financial markets mood is positive, as shown by European and US equity indices printing gains. The US 10-year Treasury yield is dipping three basis points, to sit at 1.925%, while the US Dollar Index drops 0.20%, currently at 95.44.

USD/JPY Price Forecast: Technical outlook

In the overnight session for North American traders, the pair reached a daily high at 115.68, followed by a drop to the downslope one-month-old resistance/support trendline that passes around the 115.25-35 area. Even though the USD/JPY retreated to the abovementioned trendline, the pair remained above it, confirming the upward bias. 

That said, the USD/JPY first resistance would be 116.00. Breach of the latter could pave the way for further gains and expose a 24-year-old downslope trendline drawn from August 1998, swing highs that pass around 117.00. An upward break would expose the January 2017 swing high at 118.61.

This article was originally published by Fxstreet.com.Read the original article here.

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