USD/JPY chart on Trading View used for analysis
- USD/JPY opened the week's trade with a bearish gap, bias lower.
- The pair has slipped below 112 handle and is trading 0.26% lower on the day.
- Upside remains capped at 5-DMA and the pair has slipped below 55-EMA.
- We see scope for test of lower Bollinger Band at 111.56. Further weakness will see drag till 38.2% Fib at 110.79.
- On the data front, focus shall be on U.S. retail sales, JOLTS, Industrial production and housing starts.
- FOMC minutes will be watched for longer-term topics such as alternate monetary policy frameworks and the balance sheet.
Support levels - 111.55 (lower BB), 111.30 (110-EMA), 110.76 (38.2% Fib)
Resistance levels - 112.30 (5-DMA), 112.65 (21-EMA), 112.97 (20-DMA)
Recommendation: Stay short below 55-EMA, SL: 112.30, TP: 111.55/ 111/ 110.76
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
