Despite the sharp decline last week , the pair has turned neutral , and there’s a chance to resume the upside offensive , how ?!! before we continue let’s take a quick look at the most critical data which may influence the USDJPY next week ?!!
Monday , Oct 13 2014
- Monday is a holiday in Japan (Japan – Health-Sports Day).
Wednesday , Oct 15 2014
- US has 3 events , It will release data related to Core Retail Sales (MoM) (Sep) , PPI (MoM) (Sep) and Retail Sales (MoM) (Sep).
Thursday , Oct 16 2014
- US will release its weekly report on initial jobless claims, later on the day , It will release data related to Philadelphia Fed Manufacturing Index (Oct).
Friday , Oct 17 2014
- US will release data on Building Permits (Sep).
Events will be discussed during the week in real time….
Technical Outlook :
Outlook in USDJPY has turned neutral with risk to the upside this week , support comes at the 107.52 levels , a failure to hold below the 107.52 levels on a weekly closing basis , could mean a return to the 110.08 levels , a clear break would open 112.30 next , further upside will aim the 114.65 levels.
On the downside , support comes at the 107.52 levels , losing this level on a weekly closing basis will bring a corrective pullback towards the 105.74/104.18 levels, but …note that pullback below the 107.52 should be contained well above the 104.18 levels .
In all , as long as support 107.52 holds on a weekly closing basis , outlook in USDJPY remains on the upside towards the 110.08/110.65 levels ahead of the 112.30 levels , below the 107.52 levels faces a pullback risk .