The USDJPY declined below 107.52 levels , outlook has turned to the downside , where is next support , let’s take a quick look first at critical data which may influence USDJPY pair this week :
Tuesday , Oct 21 2014
- US will release its report on Existing Home Sales.
Wednesday , Oct 22 2014
- US will release its data on Core CPI (MoM) (Sep) .
Thursday , Oct 23 2014
- US will release its weekly report on initial jobless claims.
Friday , Oct 24 2014
- US will end the week with its report on New Home Sales (Sep).
Events will be discussed during the week …..
Technical Outlook :
Outlook in USDJPY has turned neutral with risk to the downside , the weekly break below 107.52 levels put the pair in pullback mode , next support comes at the 104.18 levels , a halt is likely , but losing the 104.18 levels would open 102.23 levels , at this point I’d expect strong support from the 102.23/104.18 levels to contain fall from 110.08 levels and bring rebound .
On the upside , resistance comes at the 107.52 levels , break of the 107.52 levels should weaken the current bearish run and open 110.08 levels , to restore the upside offensive , 110.08 should be taken out on a weekly basis , otherwise risk will remain neutral with risk to the downside..
In all , as long as resistance 107.52 holds on a weekly closing basis , the USDJPY remains in pullback mode , but pullback below 107.52 levels should be contained above the 102.23/104.18 levels , above the 107.52 will turn outlook towards the 110.08 levels before next move.
Conclusion :Since the pair is neutral , watch out for news around 107.52/110.08 levels and 104.18/102.23 levels .