- The dollar slumped to seven-week lows against a basket of currencies in Asian trading on Thursday
- Weak U.S. sales data prompted investors to scale back bets that the U.S. Federal Reserve would hike interest rates by the end of 2015
- U.S. retail sales barely rose in Sept, edging up only 0.1 percent and falling short of expectations for a 0.2 percent rise, while producer prices recorded their biggest decline in eight months
- USD/JPY is currently trading at 118.95, with scope for gains on the day, day's range 119.16/118.69
- Immediate resistance is located at 119.59 (Daily Tenkan), while supports on the downside are located at 118.69 (session low Oct 15)
- U.S. CPI data due later today could have influence, pair could extend weakness on negative data, break below 118.65 could see the pair at 118.20 levels
- However daily Techs are positive, RSI is biased higher and Stochs are at oversold and on the verge of a bullish crossover
Resistance Levels:
R1: 119.44 (55-Weekly MA)
R2: 119.59 (Daily Tenkan)
R3: 119.80 (Daily High Oct 14)
Support Levels:
S1: 118.69 (session low Oct 15)
S2: 118.60 (Daily Low Sep 4)
S3: 118.29 (61.8% of 116.15-121.76)
