- Yen bulls remain in control amid tepid Chinese data and sinking Asian indices, fuelling further risk-aversion
- China's September CPI missed forecasts at +1.6% y/y vs expected +1.8%, while PPI saw -5.9% y/y, in line with expectations
- USD/JPY attempts tepid-recovery towards hourly 50-SMA amid persisting risk-off moods
- USD weak across the board as further signs of weakness in China fanned expectations that the Fed will have to wait longer before tightening
- USD/JPY gains were capped at hourly Kijun by 119.72 and the pair slipped lower to 119.63 levels
- Price action still languishing below the cloud, contained within a narrow 119.80/48 range on the day
- USD/JPY has immediate resistance at 119.78 (4h 10 DMA and ) and support at 119.62 (daily Tenkan)
Resistance Levels:
R1: 119.78 (4h 10 DMA and Tenkan)
R2: 120.00 (Daily Kijun)
R3: 120.41 (cloud top)
Support Levels:
S1: 119.48 (session low)
S2: 119.24 (Sept 19 low)
S3: 119.22 (Sept 24 low)
