US PPI Up Next
The key data focus for today’s US session is the PPI release for November. Ahead of the week’s headline CPI reading on Friday, today’s data will be closely watched and has the potential to create plenty of USD-based volatility. With the FOMC due next week, there is a high level of speculation around whether the Fed will hold tapering at current levels, or increase. Data this week will therefore be used as a gauge of that decision. With this in mind, a strong reading today will likely lift USD into Friday’s release while a soft number will weigh on the Dollar.
Where To Trade US PPI?
Following the correction lower, USDJPY has found firm support at the 112.72 level base. With MACD and RSI turning higher here, any USD upside from today’s data will put fresh focus on a continuation of the bull trend targeting a move back up to 114.70 initially and the highs thereafter. Any USD downside, however, will target 111.70 on a break of the current lows.