Weekly Technical & Trading Outlook USD/JPY

Trend Daily Chart
Sideways

Daily Indicators
Turning up

21 HR EMA
113.00

55 HR EMA
113.31

Trend Hourly Chart
Near term down

Hourly Indicators
Bullish convergences

13 HR RSI
41

14 HR DMI
-ve

Daily Analysis
Initial decline b4 rebound

Resistance
113.88 - Last Wed's low (now res)
113.50 - Last Fri's high

Support
113.09 - Last

ur's low (now res)112.62 - Last Fri's low
112.24 - 80.9% r of 111.60-114.96
111.60 - Feb's low (Feb 07)

• USD/JPY - 112.90.. Despite resuming recent upmove to a 2-week high of 114.96 last Wed, dlr then tumbled on renewed broad-based buying of yen n drop in U.S. Treasury yields, price later weakened to as low as 112.62 in NY on Fri.

• Looking at the bigger picture, dlr's early rally fm 2016 bottom (Jun) to a 10-1/2 month peak of 118.66 in mid-Dec confirms MT fall fm 2015 near 13-year peak at 125.86 has ended there, however, subsequent erratic fall to Feb's low of 111.60 confirms a temporary is made n broad sideways trading is in store. Having said that, dlr's gain to 114.96 last Wed suggests consolidation with mild upside bias would be seen for at least a strg retracement of aforesaid decline, a daily close abv 115.96 (61.8% r) anytime signals pullback is over, then price would head twd 118.66 next month. On the downside, only below 112.00/10 would abort this bullish view n risk weakness twd 109.92 (50% r of 101.19-118.66).

• Today, dlr's stronger-than-expected decline fm 114.96 to 112.62 on Fri suggests 1st leg of correction fm 111.60 has ended n although marginal weakness is likely, as hourly indicators would display 'bullish convergences' on next dec line, reckon 112.35 would hold. Abv 113.09 signals temporary low made, 113.50.