Daily technical and trading outlook – USD/JPY

  Daily USD/JPY technical outlook

Last Update At 04 Nov 2021 00:02GMT.

Trend daily chart

Sideways

Daily Indicators

Easing fm o/bot

21 HR EMA

113.96

55 HR EMA

113.92

Trend hourly chart

Sideways

Hourly Indicators

Rising

13 HR RSI

61

14 HR DMI

+ve

Daily analysis

Consolidation with upside bias.

Resistance

114.69 - Oct's 3-year high (20th).
114.44 - Mon's high.
114.21 - Wed's high.

Support

113.73 - Weds low.
113.47 - Tue's low.
113.26 - Last week's low (Thur).

USD/JPY - 114.08.. Although DLR rose marginally abv Tue's 113.98 top to 114 .00 ahead of Asian open, price ratcheted lower to 113.73 at NY open b4 rallying on upbeat US data. Later price hit session highs of 114.21 in post-FOMC trading.

On the bigger picture, DLR's fall fm 118.66 (Dec 2016) to 2019 low at 104.46 (Sep) confirms early uptrend fm 2016 29-month bottom at 99.00 has hit a top there. Despite hitting a 3-1/2 year bottom of 101.19 in Mar 2020 on risk-off trades due to COVID-19 pandemic, dlr's rally to 111.71 the same month signals correction over. Despite dlr's erratic fall to 102.60 (Jan 2021), subsequent rise to 116.65 at the start of Jul signals pullback is over n dlr's break of 2020 top at 112.22 top in early Oct to a 3-year peak of 114.69 last week signals LT rise fm 2020 3-1/2 year trough at 101.19 is en route twd 115.51, 'bearish divergences' on daily indicators would cap price below 118.66. Only below 113.01 risks 112.07.

Today, DLR's early rally fm last week's 113.26 low (Thur) to 114.44 Mon suggests correction fm 114.69 has ended, despite subsequent daily swings, as long as 113.47 holds, upside bias remains, abv 114.44 would encourage for re-test of 114.69, break, 115.00. Only below 113.73 dampens bullish view, risks 113.47.