USD/JPY was deflected by the strong resistance area 110 - 110.5 (February high, 200 DMA, 50 WMA) last week, after briefly trading above the big figure. There was enough demand in the 108.5 - 109 area (100 DMA) and with Iran risk out of the way, the pair can now make another shot at the resistance. U.S. PPI (today) and CPI (tomorrow) inflation reports could provide some fuel for the rally.
al_dcdemo's Blog
U.S. data and BOC outlook worth watching
Main economic event in the week ahead is probably the release of U.S. CPI and Retail Sales data for December, on Friday. Add to that U.S. PPI on Thursday. Monday's BOC Business Outlook Survey will be the bank's last communication before eagerly awaited monetary policy decision on January 17th.