Weekly Technical Outlook on Major -USD/JPY

  WEEKLY USD/JPY TECHNICAL OUTLOOK
Last Update At 31 Jul 2017 00:02GMT

Trend Daily Chart
Sideways

Daily Indicators
Falling

21 HR EMA
110.84

55 HR EMA
111.07

Trend Hourly Chart
Down

Hourly Indicators
Bullish convergences

13 HR RSI
29

14 HR DMI
-ve

Daily Analysis
Resumption of recent decline

Resistance
111.71 - Last Thur's high
111.28 - Last Fri's European high
110.96 - Last Thur's NY low (now res)

Support
111.51 - Intra-day low (AUS)
110.24 - May 18 low
109.95 - Jun 22 low

. USD/JPY - 110.52.. Although dlr fell initially to a 1-month low at the start of last week, short covering lifted price to 112.20 Wed b4 falling after dovish FOMC statement. Dlr later weakened to 110.56 in post-GDP NY session Fri.

. Looking the bigger picture 1st, dlr's strg rise fm 2016 bottom of 99.00 (Jun) to 118.66 (mid-Dec) confirms MT fall fm 2015 near 13-year peak at 125.86 has ended there. Despite subsequent decline to 108.13 in Apr this year, dlr's 3- legegd upmove to 114.49 in mid-Jul suggests broad sideways trading is in store. Having said that, last week's weakness to a 1-month trough at 110.56 on Fri signals a strg retracement of said move fm 108.13 has taken place n would head to 109.95, however, as the daily oscillators' readings would be in o/sold territory on such move, reckon 109.34 (80.9% r) would remain intact. Therefore, trading fm short side is favoured n only abv 112.20 signals low is made n risks 113.58.

. Today, dlr's cross-inspired break of last Mon's 110.64 low to a fresh 1- month trough of 110.56 after news of missile test by N. Korea suggests recent decline would pressure price to 110.15, 'bullish convergences' on the hourly indicators should keep price abv 109.95. Abv 111.28/34 may risk 111.60/70.

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