USD/JPY Daily
Technical Outlook: USD/JPY responded to a key resistance range this week at 114.37/60. The pair is loaded with technical considerations into the 115-handle which include the 100% extension of the April rally, the 61.8% retracement of the 2017 range and the May high.
The pullback is in focus with the broader outlook weighted to the topside while above the highlighted support confluence around 111.57/79 where the 100 & 200-day moving averages converges on the June opening range highs. A breach higher still has to contend with key resistance targets at 115.52 & 116.08 before we the next big leg higher.
USD/JPY 240min
Notes: A closer look at the 240min chart highlights a near-term ascending pitchfork formation carried over from last month. The decline is now approaching confluence support at the lower median-line parallel / 112.73– A break below this threshold would suggest a larger correction is underway with such a scenario risking a drop into 112.32 & more critical support at 111.57/79 (broader bullish invalidation and an area of interest for exhaustion / long-entries).
Interim resistance stands a 113.85 backed by the weekly highs. From a trading standpoint, I’ll be looking to see if the median-line offers resistance on a rebound with the advance off the June lows at risk while below. Added caution is warranted heading into the close of the week with the release of the U.S. Consumer Price Index (CPI) & Retail Sales figures likely to fuel increased volatility in the USD crosses.