USD/JPY chart - Trading View
USD/JPY was extending sideways grind for the 4th straight session. The major was trading 0.01% higher (largely unchanged) at 105.46 at around 01:30 GMT. 20-DMA is proving tough resistance to break as the pair shows multiple failed attempts to break above.
On the data side, Japan published its July Leading Economic Index, which came as expected at 86.9. The Coincident Index for July printed 76.2, also matching the market’s forecast. Japan Tokyo yearly CPI stood at 0.2%, missing the consensus at 0.4%. The core reading, excluding fresh food prices, bettered estimates (at -0.3% YoY) to print at -0.2% YoY.
Focus for the day shall be on U.S. Conference Board’s index of consumer sentiment for the month of September and U.S. home prices data for the month of July for further impetus.
Technical analysis for the pair shows major trend is bearish. Price action is below cloud and major moving averages. 20-DMA is stiff resistance at 105.57. Decisive break above 55-EMA could change near-term bias. Resumption of weakness looks more likely. Scope for test of trendline support at 104.15.
Major Support Levels:
S1: 105.44 (5-DMA)
S2: 105.01 (200H MA)
S3: 104.85 (Kijun Sen)
Major Resistance Levels:
R1: 105.57 (20-DMA)
R2: 105.96 (55-EMA)
R3: 106.53 (110-EMA)
Summary: Technical analysis does not provide a conclusive direction for now. Resumption of weakness looks more likely. Scope for test of trendline support at 104.15. Bearish invalidation above 55-EMA.


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