USD/JPY consolidates above 155.00 as traders brace for US data
- USD/JPY holds below 10-month peak.
- Stochastic points down and MACD loses steam.
USD/JPY is consolidating in a tight range as traders await key US economic releases that could shape expectations for the Federal Reserve’s December policy decision. Today’s focus will be on the delayed September retail sales and producer price index figures, which may provide fresh clues on inflation and consumer demand.
As long as the pair holds above the critical 155.00 level and the long-term ascending trendline, the broader outlook remains firmly bullish. However, technical indicators are signaling caution. The stochastic oscillator is retreating from the 80 threshold, while the MACD is losing momentum despite staying above its trigger and zero lines.
A break below 155.00 could trigger a pullback toward the 152.80 support and the 50-day simple moving average (SMA) near 152.15.
Alternatively, renewed upside pressure may drive the pair toward the ten-month high at 157.90, with the next resistance seen at 158.86.
All in all, USDJPY maintains a bullish bias above 155.00, but overbought signals suggest the risk of short-term corrections.
Author
Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.
