USD/JPY technical analysis: Drops to fresh weekly lows, eyeing 108.00 mark ahead of US CPI

• The USD/JPY pair extended its overnight pullback from over one-week-old ascending trend-line hurdle and continued losing ground through the early European session on Wednesday.
• A subsequent slide below 100-hour SMA, amid a shift in the risk mood, was seen as a key trigger for bearish traders and behind a follow-through weakness to fresh weekly lows.

Given that technical indicators on hourly and daily charts have failed to gain any meaningful traction, the pair now seems poised to resume its well-established near-term bearish trend and head back towards challenging multi-month lows support near the 107.85 zone.

Despite the bearish set-up, traders might still be reluctant to place any aggressive bets and prefer to wait on the sidelines ahead of Wednesday’s important release of the latest US consumer inflation figures, due later during the early North-American session.

On the upside, immediate resistance is now pegged near the 108.45-50 region, above which a bout of short-covering could lift the pair back towards challenging the mentioned trend-line resistance, currently placed just ahead of the 109.00 round figure mark. 

USD/JPY 1-hourly chart