USD/JPY fails to hold major trendline breakout, scope for downside on bearish divergence.
US ADP report on private sector employment, followed by ISM non-manufacturing PMI will be closely watched for further impetus.
Fedspeaks will also be watched for fresh insights on the US interest rates outlook. A more constructive outlook on the Fed's tightening path will keep the USD buoyed.
Technical indicators on daily charts are still bullish, but 'Bearish Divergence' on RSI and Stochs raises scope for downside.
Next major resistance seen at 114.32 (61.8% Fib retracement of 118.662 to 107.318 rally).
200-DMA at 111.955 is strong support on the downside, weakness likely on break below.
Support levels - 112, 111.955 (200-DMA), 111.65 (38.2% Fib retracement of 118.662 to 107.318 rally)
Resistance levels - 113, 113.25 (Sept 27th high), 114, 114.32 (61.8% Fib)
Good to go short on decisive break below 5-DMA, target 111.95/ 111.65/ 111
US ADP report on private sector employment, followed by ISM non-manufacturing PMI will be closely watched for further impetus.
Fedspeaks will also be watched for fresh insights on the US interest rates outlook. A more constructive outlook on the Fed's tightening path will keep the USD buoyed.
Technical indicators on daily charts are still bullish, but 'Bearish Divergence' on RSI and Stochs raises scope for downside.
Next major resistance seen at 114.32 (61.8% Fib retracement of 118.662 to 107.318 rally).
200-DMA at 111.955 is strong support on the downside, weakness likely on break below.
Support levels - 112, 111.955 (200-DMA), 111.65 (38.2% Fib retracement of 118.662 to 107.318 rally)
Resistance levels - 113, 113.25 (Sept 27th high), 114, 114.32 (61.8% Fib)
Good to go short on decisive break below 5-DMA, target 111.95/ 111.65/ 111