The release of the US Consumer Price Index on Tuesday at 12:30 GMT caused a drop of the US Dollar. On the USD/JPY currency exchange rate charts the initial drop was followed up by a short recovery before the decline resumed. By the middle of Wednesday’s European trading hours, the rate had reached the 109.30 level and lost 80 base points.
If the pair continues to decline, technical support could be found in the weekly S2 simple pivot point at 109.18. Below the pivot point, the 109.00 mark might stop or even reverse a decline. Meanwhile, the August 16 and 17 low levels near 109.15 are capable of providing support.
However, a recovery of the rate could find resistance in the weekly S1 simple pivot point at 109.57 and the 109.60 exchange rate level.