USDJPY in strong bearish acceleration ahead of US data
|Strong bearish acceleration on Wednesday eventually broke below daily Kijun-sen (113.19) which kept the downside protected in past one week and extended weakness through next significant support at 112.95 (31 Oct trough).
Fresh bears also cracked support at 112.82 (Fibo 61.8% of 111.65/114.73 upleg), break of which would generate fresh bearish signal.
Top of weekly cloud (112.31) is coming in sight, with stronger bearish acceleration capable of traveling towards key short-term supports at 111.65/54 (16 Oct trough / daily cloud top).
Yen rallies on weaker Nikkei Index with focus turning towards US CPI and Retail Sales data, due later today.
Inflation is expected to weaken in Oct according to 0.1% forecast vs 0.5% in Sep while core CPI is expected to tick higher (2.2% f/c vs 2.1% previous month).
Today’s release will be fresh indication for the US policymakers, however, as Fed is expected to act in December and hike rates once more this year.
Retail Sales are expected to significantly drop in Oct (0.1% f/c vs 1.6%) which could further pressure the greenback on weak releases today.
Res: 113.19; 113.49; 113.65; 113.91
Sup: 112.76; 112.31; 112.00; 111.65
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.