The Japanese yen inched higher after January’s Tokyo CPI beat expectations.
The US dollar found support in the daily demand zone around 113.50. And that is a sign that upbeat sentiment in the medium-term remains intact.
A close above the psychological level of 115.00 attracted momentum traders and sped up the rebound. 115.60 at the origin of the January liquidation is key resistance. In fact, its breach could put the uptrend back on track.
The RSI’s overextension may cause a limited pullback with 114.50 as the closest support.
