EUR/USD, USD/JPY, GBP/USD: Key Levels Ahead of Critical US CPI Data

Major forex pairs are trading cautiously with the dollar mostly lower ahead of today's crucial US CPI inflation data release. EUR/USD is holding above key support levels as traders position for potential volatility, while USD/JPY remains range-bound near recent highs. GBP/USD shows mixed signals with technical indicators suggesting consolidation before the data. The upcoming CPI report will be pivotal for Federal Reserve rate expectations, with any surprise potentially triggering significant moves across all major pairs. Current market positioning suggests expectations for a moderate inflation reading, though deviation from consensus could spark sharp reactions. Technical setups show EUR/USD facing resistance at recent highs, USD/JPY supported by BOJ policy divergence, and GBP/USD trapped between converging moving averages. Traders should prepare for increased volatility and potential breakouts from current ranges following the CPI release.