Outlook in USDJPY remains on the upside as long as support 118.47 holds on a daily closing basis , resistance comes at the 121.67 levels , a break would open 122.90 levels , a halt is likely , but a breach will turn focus on the 124.40 levels , further upside will aim the 126.00 levels.
On the downside , support comes at the 120.37/119.27 levels ahead of the 118.47 levels (main), losing the last one will turn outlook neutral and bring consolidation above the 115.44 levels .
In all , as long as support 118.47 holds on a daily closing basis , outlook in USDJPY remains on the upside towards the 122.90/124.40 levels , below 118.47 will turn outlook neutral and bring consolidation above the 115.44 levels.
In the medium term forecast , as long as support 118.00 holds on a weekly closing basis , the pair remains bullish with risk towards the 121.50/124.00 levels , above 124.00 will open 125.75/127.75 next . On the downside below 118.00 levels will turn outlook neutral and bring consolidation above the 112.47 levels.
In the long term forecast , critical resistance comes at the 118.01 levels (low of July 2007 ) , break of the 118.00 levels on a monthly closing basis will increase the risk towards the 124.00 levels ahead of the 127.63 levels , further upside will aim the 135.00 levels .On the downside , a failure to hold gains above the 118.00 levels on a monthly closing basis could mean a return to the 110.65 levels before the next move !!!
Key data /events which may influence USDJPY this week :
Japanese BSI manufacturing index. Tuesday , Dec 09
Japanese core machinery orders and tertiary industry activity followed by US retail sales & US jobless claims . Thursday ,Dec 11
US producer prices index & US consumer sentiment. Friday , Dec 12