The USD/JPY pair extended its consolidation phase and remained confined within a narrow trading band around 104.00 handle.
Currently trading with mild negative bias around 103.70-75 region, traders seemed uninspired with mixed Chinese macroeconomic data that showed growth in the world's second largest economy held steady at 6.7% during Q3 of 2016, while industrial production for September dropped to 6.1%.
Also on Tuesday, the pair seesawed between tepid gains / minor losses and struggled for a firm direction. Even the release of US consumer inflation failed to provide any impetus as the near-term trajectory remains solely dependent on investors’ expectations over the next Fed rate-hike action.
Today's US housing market data – building permits and housing starts will be looked upon to grab short-term trading opportunities, while the broader movement would be driven by the prevalent risk sentiment around equity markets that derives the Japanese Yen's safe-haven demand.
Technical levels to watch
A follow through selling pressure below session low support near 103.65, leading to a subsequent drop below 103.50, is likely to accelerate the slide towards 100-day SMA support near 103.15-10 region. Meanwhile on the upside, recovery momentum above 104.00 handle might continue to confront resistance near 104.20 level (yesterday's high) above which the pair is likely to aim towards 104.40-50 strong resistance area.
- 1 Week
- 1 Month
- 1 Quarter
1 Week Avg Forecast 103.27
- 44% Bullish
- 44% Bearish
- 11% Sideways
Bias Neutral 1 Month Avg Forecast 103.16
- 15% Bullish
- 46% Bearish
- 38% Sideways
Bias Bearish 1 Quarter Avg Forecast 104.07
- 20% Bullish
- 40% Bearish
- 40% Sideways