USDJPY Daily Forecast Oct 10 2018

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USDJPY: Corrective Pullback Risk Remains Intact.

As long as 113.35 broken support turned resistance holds on a daily closing basis, the USDJPY remains under pressure with a risk for further downside move, support comes at the 112.85/112.50 levels, a halt is likely but a cut would extend the corrective pullback to the 112.00 levels, further down, support comes at the 111.63 levels.

On the upside, a daily closing back above 113.35 levels will release some pressure and pave the way to the 114.27 levels, before another fall, above 114.27 will challenge 114.88 levels.

Conclusion: The USDJPY continues to face corrective pullback threats below 114.27/113.35 levels…

A daily closing back above 113.35 will bring limited gains below 114.27 before another fall…

Support: 112.85, 112.55, 112.00, 111.63

Resistance: 113.35, 114.27, 114.88, 115.50

Key data/events which may affect EURUSD today:

1- U.S PPI

U.S data may give us a clear direction and get the pair out of current range…

The U.S will report on Producer Price Index for Sep today at 12:30 GMT. The indicator is expected to rise 0.2%, from -0.1% in the previous month.

Any reading above 0.2% is likely to challenge/break above 113.35 levels. While any reading below 0.2% may take it down to 112.85/112.50 levels.

2- Fed speakers

Speech from Atlanta Fed boss Raphael Bostic will be in focus late tonight at 22:00 GMT. The Fed raised interest rates late last month, raising its third interest rate this year, and is expected to follow another increase before the end of December, bringing the federal funds rate to 2.25-2.50%. Any comments on interest rates will affect the market.

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