TD FX Strategy Research notes that today's soft US inflation data set the tone for the USD near-term price action into the weekend.

For EUR/USD, TD expects the break of the 1.1850 level reinforces upside towards 1.20 and a retest of the highs.

For USD/JPY, TD expects the break of 112 to increases the scope for a break below 110.0, as the USD pushes lower.

In line with this view, TD entered a fresh short USD/JPY* this week targeting a move towards 107.

Source: TD Securities ResearchOriginal Article