FxWirePro: USD/JPY likely to extend weakness, slightly better-than-expected US Q3 GDP fails to impress

USD/JPY chart on Trading View used for analysis

• USD/JPY looks set to extend wekaness, as a slightly better-than-expected US Q3 GDP fails to impress US dollar bulls.
   
• The major cracked the key trendline support at 112 on Friday, hitting fresh multi-week lows at 111.30's.
   
• The major was supported at daily cloud, pared losses to close higher. But recovery attempts today seem to lack traction.
   
• We see scope for further weakness. Next major support lies at 111.51 (21W EMA) ahead of 110.76 (38.2% Fib).
   
• Data released earlier today showed Japan Retail Trade for September came in above expectations.
   
• The annualized headline Retail Trade was at 2.1%, better than forecasts of 1.6%, though the numbers still contracted slightly from the previous month's 2.7%.
   
• BoJ is scheduled for a policy meet this week and analysts do not expect any change in monetary policy.
   
• On the data front, along with other data, focus shall be on US NFP data, Consumer confidence, Construction spending and ISM manufacturing index.

Support levels -  111.64 (daily cloud), 111.51 (21W EMA), 110.76 (38.2% Fib)

Resistance levels - 112.17 (5-DMA), 112.42 (21-EMA), 112.67 (20-DMA)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.