FXStreet (Mumbai) - USD/JPY failed near last Tuesday’s low and drifted lower in the mid-European trades, as the US dollar recedes gains against its major competitors ahead of the US CPI report. USD/JPY drops from 123.43 highs Currently, the USD/JPY pair trades 0.07% higher at 123.27, stalling its upward march near mid-point of 123 handle. The major trims gains and turns lower towards the hourly 20-SMA located at 123.26, as markets appear to lock-in gains after the recent upsurge and gear up for the main risk event for today – the US inflation data. Markets are expecting the US consumer prices to rebound 0.2% in Oct versus a -0.2% decline previously. While the core figures are expected to remain steady at 0.2%. The prevailing risk-on market profile amid rallying European equities also failed to boost the sentiment around the USD/JPY pair, as cautiousness sets in ahead of the US economic releases due later in the NY session. Looking ahead, Wednesday’s FOMC minutes and Thursday’s BOJ policy decision will remain the main highlight for the balance of this week. USD/JPY Technical levels to watch The prices trade firmer above 123 handle and faces immediate hurdle at 123.45/50 (Nov 10 High/ psychological levels). A break above the last, the major could test 123.61 (Nov 9 High). To the downside, the immediate support in sight at 122.97 (daily pivot/ 10-DMA) below which 122.89/84 (1h 100-SMA/ 5-DMA) would be tested. A break below the last, 122.61 (daily S1) comes into the picture. For more information, read our latest forex news.