Dollar edges higher ahead of CPI; yen drops sharply

The dollar continues to rise ahead of the CPI release, with the market focused on upcoming inflation data. This situation bears significant implications as the Federal Reserve's monetary policy may be affected by the results. Conversely, the yen has sharply declined, particularly due to rising U.S. interest rates putting pressure on the yen. This creates a conflicting landscape between the dollar and yen, necessitating critical evaluations by traders. The market's direction, especially influenced by the CPI outcome, could significantly affect future trading strategies. Overall, there seems to be a strengthening bullish sentiment towards the dollar; however, due to the lack of explicit support or resistance levels, identifying a clear trading signal may prove challenging.