USD/JPY chart on Trading View used for analysis
- USD/JPY regains bullish momentum in early Asian trade, tests 114 handle as the pair recovers from slight bearish gap open.
- Data released earlier today showed Japan's Domestic Corporate Goods Prices came in largely as-expected.
- We are likely to see constrained volumes on the day as US markets remained closed for US Thanksgiving long weekend.
- Also data calendar remains thin on the day. Markets await the mid-week's higher-impact economic data.
- Data for the week which could impact the pair: US NFIB survey (Tue), Japan GDP (Wed), US CPI (Wed), US retail sales and Philly Fed survey (Thur) and US industrial production (Fri).
- The pair maintains its positive tone but we also see some overbought pressures on momentum indicators.
- Price action is struggling at 114 handle and a decisive break above is required for upside continuation.
Support levels - 113.75 (5-DMA), 113, 112.88 (20-DMA)
Resistance levels - 114.55 (Oct 4 high), 114.74 (Nov 2017 high), 115
Recommendation: Watch out for decisive breakout at 114 to go long.
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
