FxWirePro: USD/JPY recovers slightly on improved risk appetite, upside capped at 112 handle

USD/JPY chart on Trading View used for analysis

• USD/JPY recovers slightly on improved risk appetite, retakes 112 handle.
   
• The pair finds immediate resistance at 5-DMA at 112.09. Break above could see further upside.
   
• Price action has dipped below 55-EMA and finds next major support at daily cloud.
   
• Break below cloud will see resumption on weakness. Dip till 38.2% Fib at 110.76 then likely.
   
• Data released overnight showed that US retail sales rose rise less than expected in September.
   
• According to the U.S. Census Bureau, retail sales grew by 0.1% m/m in September, missing expectations of 0.5%.
   
• For the day, focus shall be on JOLTS job openings, Industrial production and NAHB housing starts.
   
• FOMC minutes will be also watched for longer-term topics such as alternate monetary policy frameworks and the balance sheet.

Support levels - 111.48 (lower BB), 111.31 (110-EMA), 110.76 (38.2% Fib)

Resistance levels - 112.09 (5-DMA), 112.60 (21-EMA), 112.95 (20-DMA)

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