Japanese Yen Strengthening On Strong CPI data

The EUR/USD is ranging today after fluctuating intensely yesterday due to speculation on both the euro and the dollar. Today, the pair may not move so wildly, as things tend to quite down before the weekend. The main sources of movement today will be German CPI data coming out at12:00 GMT and US Michigan Consumer Sentiment and Michigan Consumer Expectations at 13:55 GMT. In the meantime, ranging is likely Look for support at 1.3580 and resistance at 1.3611.

The USD/JPY has fallen in the Asian session as a result of strong Japanese retail sales data and CPI data that met expectations.  Thus, the yen has strengthened substantially and so far is poised to keep strengthening. Prospects for the USD/JPY will continue to be bearish,barring better than expected US data later today. However, movement may be more mild in light of the coming weekend. Look for support at 101.31 and resistance at 102.19.