FxWirePro: USD/JPY grinds sideways at trendline resistance, US dollar barely moves in response to Biden's aggressive stimulus plan
FxWirePro: USD/JPY extends marginal gains after previous session's slump, outlook bearish
USD/JPY chart - Trading View
USD/JPY was trading 0.12% higher on the day as the pair extends marginal gains from previous session's close of 104.58.
The major is attempting a bounce after one of the biggest losses in two months, but upside lacks traction.
Technical studies have turned bearish. Major and minor trend are strongly bearish. Price action is below major moving averages and volatility is rising.
Momentum is with the bears. ADX support downside with negative DMI dominance. MACD supports further downside.
The pair finds immediate support at rising trendline at 104.43. Break below will drag the pair lower. Bearish invalidation only above daily cloud.
Focus remains on US Initial Jobless Claims for the week ended on October 16, which are expected at 860K versus 898K previous. Political headlines affecting the market’s mood will also drive price moves.
Support levels - 104.43 (trendline), 104 (Double bottom)
Resistance levels - 105.12 (5-DMA), 105.35 (21-EMA)