USD/JPY analysis: heading towards 113.10 support

USD/JPY Current price: 113.56

  • Broad-based dollar's weakness keeping the pair below key resistance.
  • US PPI expected little changed in October; yield's behavior to weight more on the pair.

The USD/JPY pair peaked at 113.90, as market's mood stood positive within Asian trading hours, but changed course following a soft European indexes' opening. The greenback came under selling pressure, sending the pair towards its lower for the day, where it currently stands, around 113.55, and looking heavily according to intraday technical readings, given that in the 4 hours chart, the early advance was limited by selling interest around a horizontal 100 SMA, while technical indicators turned lower,  currently pressuring their mid-lines. The US is about to release the only relevant macroeconomic figure of the day, its October PPI. Core inflation at factory levels is expected to have risen by 0.2% in the month, and by 2.3% when compared to a year earlier. If the numbers are in-line, or below expected, the greenback will likely remain in trouble for the rest of the day, although  stronger stocks and yields can offset a poor report. 113.10 is the immediate support, with a break below it fueling the decline, probably all through the US session.

Support levels: 113.10 112.85 112.50

Resistance levels: 114.05 114.40 114.85

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