USDJPY: Bullish With Caution, Eyes On 114.10 Level…
The USDJPY maintained a bullish momentum yesterday. Topped at 113.70 and bottomed at 113.16 level. This development leaves the pair targeting the 114.10 level. A halt is likely, it may test 113.70 before attempts to break above 114.10. Anyway; above 114.10 aims 114.70, further upside, resistance comes around 115.20 level.
On the downside, a failure to hold above 113.70 level on a daily closing basis could mean a return to 113.16 level. It should move higher from here, but If this fails to happen, it will face a fall risk to 112.29, further down, support comes at 111.75 level.
Conclusion: The USDJPY faces upside threats above 113.16 level.
Note: The pair may spike above 113.70 and close back below that level by the end of the day. This scenario suggests a false bullish breakout…A decline is possible…
Support: 113.40, 113.17, 112.29, 111.75
Resistance: 113.70, 113.83, 114.10, 114.70
Key data/events which may affect USDJPY today:
The U.S will report on Retail Sales at 13:30 GMT. Analysts expect a fall to 0.1%, from 0.8% a month earlier. Core Retail Sales is also expected to fall 0.2%, from 0.7% in the previous month. A buying opportunity is likely around 113.16 level. Note that any reading above forecast will support the pair.