Currently, USD/JPY is trading at 103.87, up 0.01% on the day, having posted a daily high at 103.98 and low at 103.80.
The Tokyo open is mixed and subdued while markets await China's GDP outcome for the third quarter results. Oil, however, can be used as a barometer of risk appetite and general demand in the market. We have seen impressive moves from the oil bulls and elsewhere in such currencies as AUD/JPY, with a firm bid on the 4hr chart from 76 on to the 80 handle recently - AUD/JPY – Looking to re-test 80.00 levels
While the dollar is mixed and forced onto the back-foot across the board, USD/JPY remains in positive territory regardless having rallied from the 100 handle in late September.
While spot is in positive territory, analysts at Commerzbank suggested that above 104.63 targets the May low at 105.55. "We suspect that this will hold the initial test as we note the weekly imoku 2 lies 105.45 (cloud resistance)."
With spot trading at 103.88, we can see next resistance ahead at 103.91 (Hourly 20 EMA), 103.98 (Hourly 100 SMA), 103.98 (Daily High), 104.02 (Daily Classic PP) and 104.20 (Monthly High). Support below can be found at 103.87 (Weekly Classic PP), 103.86 (Daily Open), 103.80 (Hourly 200 SMA), 103.80 (Daily Low) and 103.68 (Yesterday's Low).