USDJPY: Bearish But Around Weekly Support!
As long as 112.35 resistance holds on a daily closing basis, the USDJPY remains on the downside to the 111.75 levels, a halt is likely but a cut would open 111.05 levels, further down, support comes at the 110.50 levels.
On the upside, a sustained breakout- daily closing – above 112.35 will bring limited gains below 112.85/113.38 levels before another fall, above 113.38 will reverse risk to the upside to the 114.54/114.88 levels.
Conclusion: The USDJPY continues to face downside threats below 113.38 levels even in the case of a corrective recovery…
Support:111.75, 111.05, 110.50, 110.05
Resistance: 112.35, 112.85, 113.38, 114.27
Note that the pair is around weekly chart support at 111.65 which suggests possible rebound to the upside, a daily closing above 112.35 is needed to open 112.85/113.38 levels, stability below 112.35 will keep the pair under pressure.
Key data/events which may affect USDJPY today:
- The U.S will report on Retail Sales for September today at 12:30 GMT. The indicator is expected to rise by 0.7%, from 0.1% a month earlier. Any reading above 0.7% will support the U.S.D while any reading below 0.7% will support the JPY against the U.S.D.
Core Retail Sales is expected is also expected to rise by 0.4%, from 0.3% in the preceding month. Any reading above 0.4% will support the U.S.D while any reading below 0.4% will support the JPY against the U.S.D.