FxWirePro: USD/JPY tests symmetric triangle support, outlook bearish

USD/JPY chart - Trading View 

Spot Analysis:

USD/JPY was trading 0.05% lower on the day at 109.31 at around 06:30 GMT

Previous Week's High/ Low: 110.44/ 109.58

Previous Session's High/ Low: 109.74/ 109.11

Fundamental Overview:

U.S. data overnight showed core inflation missed estimates and import prices surprisingly dropped in August.

FOMC meeting looms next week. Traders await further clues on when the central bank will begin asset tapering.

Focus now on Thursday is on Retail Sales, which are projected to have dropped in August for the second consecutive month. 

The Philly Fed Manufacturing index is also of interest after the NY Fed Manufacturing index earlier this week beat estimates. Weekly jobless claims are set to bounce off the lows. 

On the other side, the Japanese Yen gains on the optimism after a Reuters poll showed 53% of Japanese firms expected the economy would recover to pre-pandemic levels by end of the FY 2022.

Technical Analysis:

- USD/JPY was trading at 'Symmetric Triangle' base, break below will add to the downside bias

- The major was in the red for the third consecutive session

- Price action has slipped below 21-EMA on the weekly charts, close below will reinforce weakness

- GMMA indicator shows bearish shift on the daily charts, while major trend remains neutral

Major Support and Resistance Levels:

Support - 109.22 (Symmetric Triangle base), Resistance - 109.79 (21-EMA)

Summary: USD/JPY was trading pivotal at trendline support. Technical bias is bearish. Watch out for break below Symmetric Triangle pattern for further weakness.