Key Highlights
- The US Dollar started a downside move after trading towards the 114.20 level against the Japanese Yen.
- There was a break below a major bullish trend line with support at 113.90 on the 4-hours chart of USD/JPY.
- The Euro Zone Consumer Confidence in Nov 2018 (Preliminary) declined from -2.7 to -3.9.
- Today, the US Manufacturing PMI for Nov 2018 (Preliminary) will be released, which is forecasted to remain at 55.7.
USDJPY Technical Analysis
The US Dollar faced a strong resistance near the 114.20 level against the Japanese Yen. The USD/JPY pair started a downside move and traded below the 113.40 support level.
Looking at the 4-hours chart, the pair declined below many key supports, including 113.20 and 112.60. There was also a break below the 100 simple moving average (red, 4-hours) and the 50% Fib retracement level of the last wave from the 111.37 low to 114.21 high.
Besides, there was a break below a major bullish trend line with support at 113.90 on the same chart. The decline was such that the pair spiked below the 112.50 support level. It traded as low as 112.30 later recovered above the 112.80 level.
However, the pair is facing a solid resistance near the 113.10-20 zone. Moreover, there is a bearish trend line with resistance at 113.30 on the same chart.
Therefore, it won’t be easy for buyers to clear the 113.20 and 113.30 resistance levels. On the downside, an initial support is at 112.60, below which the pair could slide towards the 112.40 level. The main support is at 112.00 and the 76.4 Fib retracement level of the last wave from the 111.37 low to 114.21 high.
Overall, as long as USD/JPY is below the 113.30 level, it could continue to correct lower in the short term.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for Nov 2018 (Preliminary) – Forecast 52.2, versus 52.2 previous.
- Germany’s Services PMI for Nov 2018 (Preliminary) – Forecast 54.5, versus 54.7 previous.
- Euro Zone Manufacturing PMI Nov 2018 (Preliminary) – Forecast 52.0, versus 52.0 previous.
- Euro Zone Services PMI for Nov 2018 (Preliminary) – Forecast 53.5, versus 53.7 previous.
- US Manufacturing PMI for Nov 2018 (Preliminary) – Forecast 55.7, versus 55.7 previous.
- US Services PMI for Nov 2018 (Preliminary) – Forecast 54.8, versus 54.8 previous.
- Canadian Retail Sales Sep 2018 (MoM) – Forecast +0.1%, versus -0.1% previous.
- Canadian Consumer Price Index Oct 2018 (MoM) – Forecast +0.1%, versus -0.4% previous.
- Canadian Consumer Price Index Oct 2018 (YoY) – Forecast +2.2%, versus +2.2% previous.
