USD/JPY is trading at 135.053, 0.09% up since previous day close. The Japanese YEN weakened against the USD as traders waits for the outcome of U.S inflation data which is to be revealed on Wednesday. On data front, the Japan’s Average Cash Earnings grew by just 0.8% same as previous month & the Household Spending fell by 1.9% against the expectation 0.9% which turned out to be slightly negative for USD/JPY. The result of Current Account data will be closely monitored in later half of the week. As seen in the chart, the pair is still trading within the converging trend-lines which indicates a narrow down in momentum on short term basis. Also, the ADX line is indecisively trading near level 25 which indicates the cautious trading on an intraday basis in USD/JPY.

GER30 is trading at 16043.3, 0.06% up since previous close. The range bound trading can be noticed in U.S & other global markets since previous session as traders & investors waist for the result of CPI data release event which is to be held on Wednesday. Globally, the better-than-expected U.S Non-farm Payroll data & weaker corporate earnings led some sort of selling pressure in GER30. Last week, the ECB hiked an interest rate by 25bps leading to 3.755% range from 3.50% which slightly cushioned the index GER30. As seen in the chart, the GER30 is trading near Fibonacci Extensions level of 61.8 which acts as a major resistance level. If breached, a strong breakout can be witnessed in short term basis. Buying on dips may be recommended for the day in GER30.

Gold is trading at $2025.02, 0.04% up since previous close. The Gold inches up on Tuesday against the mixed USD ahead of the result of U.S & Chinese inflation data due to be released on Wednesday. Last week, the U.S issued robust Non-farm Payroll data which cushioned the USD & dragged down the gold prices to $2000 levels. However, the positive outlook over Chinese equity markets make the industrial metals like Silver expensive since China is a major consumer of metals. The focus will be on the speech of Fed members due today. As seen in the chart, the Gold is within the bullish channel pattern; forming higher highs & higher lows. This indicates further upside & hence, buying bias may be established.