The US dollar is trapped in a period of price consolidation against the Japanese yen currency, ahead of the release of today’s CPI inflation number from the United States. A bearish head and shoulders pattern appears to be forming across the four-hour time frame. Selling any rallies back towards the 109.80 to 110.10 area in expectation of an eventual reversal lower is a possible strategy.

The USDJPY pair is only bullish while trading above the 109.35 level, key resistance is found at the 109.80 and 110.10 levels.

The USDJPY pair is only bearish while trading below the 109.35 level, key support is found at the 109.00 and 108.55 levels.