Japan Goes On Holiday After USD/JPY Charts Doji Candlestick

USD/JPY charted a Doji candlestick Wednesday and staged a failed attack at the 100-DMA, lending support to suspicions that the recent dynamic pullback may be running its course. The rate bounced off intraday lows in the London morning, but erased gains after the release of U.S. CPI data, as headline & core Y/Y metrics marginally missed forecasts and core M/M inflation unexpectedly ground to a halt.

• Japanese markets are closed for the National Foundation Day. USD/JPY changes hands at Y104.61, little changed on the day.
• Kyodo reported that the U.S. and Japan reached a broad agreement on the extension of their cost-sharing deal re: the presence U.S. troops in Japan.
• Another Kyodo report noted that "PM Suga's administration is in the final stages of making a decision on maintaining the emergency declaration" and is now "leaning towards leaving in place the state of emergency declared in 10 prefectures, at least for this week, [...] instead of lifting it in three prefectures."
• The rate showed below the 20-EMA yesterday after it limited losses on Tuesday. The aforementioned 100-DMA at Y104.39 provides the initial layer of support and a break here would expose trendline support at Y104.27. Bulls look for a break above Feb 9 high of Y105.26 before targeting Feb 5 high of Y105.77, a key near-term resistance.
• Japanese docket is virtually empty during the remainder of this week.