USD/JPY stays directionless near mid-113 post-US PPI data

• PPI from the U.S. surpasses the market estimates.
• DXY advances to 94 after upbeat PPI reading.
• USD/JPY trades in a 20-pip range on Tuesday.

The USD/JPY pair is struggling to find direction on Tuesday and is fluctuating in a very tight 20-pip range. As of writing, the pair was at 113.49, losing 0.06% on the day.

Today's data from the United States showed that the PPI in November rose by 0.4% in November, matching October's reading and beating the market estimate of 0.3%. On an annual basis, the PPI increased by 3.1%, recording its highest reading since January of 2012. Following the data release, the US Dollar Index gained traction and rose to a fresh session high at 94.03. As of writing, the index was at 94.02, up 0.1% on the day.

• US: PPI for final demand increased 0.4% in November

Despite the recent upsurge witnessed in the DXY, however, the USD/JPY pair's reaction to the data was virtually non-existent. The mood surrounding the Wall Street at the opening on Tuesday could be the next catalyst for the pair. Nevertheless, ahead of tomorrow's FOMC meeting, it wouldn't be surprising to see the pair extend its neutral price action.

Technical levels to consider

The pair could face the first technical hurdle at 113.70 (Monday's high) ahead of 114.10 (Nov. 9 high) and 115 (psychological level). On the downside, supports align at 113 (psychological level/50-DMA), 112.30 (20-DMA) and 111.70 (200-DMA).