Markets cautious, awaiting clues on how the Fed might the pace for additional monetary tightening next year.
Dollar long positions are being liquidated at a faster pace than expected and USD could face additional pressure if U.S. Treasuries are bought back on relief that the Fed's rate hike cycle will be quite a slow one.
Halt in oil and equities slide seen providing some traction to the dollar which halted its slide against the euro and yen. USD/JPY was flat at 121.04, having pulled back from a 6-week low of 120.35 on Monday.
Price action is contained within the Ichi cloud, cloud base at 120.82 is initial support, while 121.31 (cloud top) is immediate resistance on the upside.
US CPI data due later today in the U.S. Session, the last data before Wednesday’s Fed rate hike decision will be close watched.