“The hourly chart shows indicators aiming higher from oversold levels, although price remains still near daily low,” comments Valeria Bednarik, Chief Analyst at FXstreet.com. “In bigger time frames, the bearish momentum has gained track: next support comes at 100 DMA, currently around 78.80, also strong static support level.”
Further bear targets are noted at 78.57 (Oct 11 high) and 78.30 (Jan 25 high). If bulls regain the upside, resistance lies at 79.65 (Aug 20 high) and 79.80 (38.2% Fibo). At current levels, USD/JPY is set to end the week with a 1.2% loss, its first decline in three weeks as is pulls off of a 50% Fibonacci retracement level hit last week around 80.65.
On offer today in Asia on the data front are Japan’s October stock figures, the RBA’s MP statement, and a slew of Chinese economic data, including key inflation data for October, retail sales, and fixed asset investments.