The Japanese yen has put together a strong session vs the Greenback following last night’s Tokyo CPI release. The USD/JPY is down in the neighborhood of 40 pips for the day, trading in the vicinity of 112.00.

Thursday evening, the Tokyo CPI except Food & Energy (YoY, Oct.) and Tokyo CPI except Fresh Food (YoY, Oct.) were released to the public. Both numbers came in as expected, with only a small 0.1% discrepancy in the CPI except Food & Energy (YoY, Oct.) figure being reported.

If you are planning on holding open positions in the USD/JPY over the weekend, be ready for the Large Retailers’ Sales (Sept.) and Retail Trade (YoY, Sept.) reports to be released shortly after the Sunday electronic open. These numbers may bring added action to the market ahead of a week full of fundamental market drivers.

USD/JPY Technicals

After a bearish run, this market has settled into a late-session rotational pattern. Rates are near 112.00 and are very likely to settle in this area as we roll into the weekend.

For the near future, there are two levels worthy of note:

• Resistance(1): Bollinger MP, 112.84
• Support(1): 62% Macro Wave Retracement, 111.98

Overview: Next week is going to be a good one to trade the USD/JPY. U.S. Core Personal Consumption (Sept) is due out Monday, followed by the mid-week BoJ Interest Rate Decision. Wrapping up the action is the Friday release of U.S. NonFarm Payrolls (Oct.). These primary market movers may bring us a very different USD/JPY seven days from now.