USD/JPY chart on Trading View used for analysis
- USD/JPY recovers slightly on improved risk appetite, retakes 112 handle.
- The pair finds immediate resistance at 5-DMA at 112.09. Break above could see further upside.
- Price action has dipped below 55-EMA and finds next major support at daily cloud.
- Break below cloud will see resumption on weakness. Dip till 38.2% Fib at 110.76 then likely.
- Data released overnight showed that US retail sales rose rise less than expected in September.
- According to the U.S. Census Bureau, retail sales grew by 0.1% m/m in September, missing expectations of 0.5%.
- For the day, focus shall be on JOLTS job openings, Industrial production and NAHB housing starts.
- FOMC minutes will be also watched for longer-term topics such as alternate monetary policy frameworks and the balance sheet.
Support levels - 111.48 (lower BB), 111.31 (110-EMA), 110.76 (38.2% Fib)
Resistance levels - 112.09 (5-DMA), 112.60 (21-EMA), 112.95 (20-DMA)
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.