Chart - Courtesy Trading View
USD/JPY trades directionless as market participants weighed slowing CPI and PPI data against hawkish rhetoric from Federal Reserve policymakers.
Major focus will be on the release of the FOMC’s meeting minutes for clues on the size of the next interest rate hike in December.
On the data front, US manufacturing and services PMI readings, Michigan consumer sentiment, durable goods orders and new home sales will provide impetus.
Technical Analysis:
- USD/JPY was trading largely unchanged at 140.31 at around 04:02 GMT
- The major was trading in tight ranges with session high at 140.49 and low at 140.15
- Price action is grinding sideways along 110-EMA, remains capped within daily cloud
- Momentum is bearish, RSI is below 50, Stochs poised for bullish rollover from oversold levels
- Price action is below 200H MA, GMMA indicator shows minor trend has turned neutral
Major Support Levels: 139.92 (5-DMA), 136.93 (Lower BB)
Major Resistance Levels: 141.21 (200H MA), 143.32 (55-EMA)
Summary: USD/JPY needs decisive break above 200H MA for upside resumption. Technical indicators point to further consolidation around 140 level. Failure to break above 200H MA could see more downside.


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