USDJPY AWAITS U.S DATA
The USDJPY recent risk-reversal remains intact, with price-action still well bid around the 110.40 level, after the pair moved to its highest trading level since July 16th, hitting 110.73 during the Asian session.
Traders will now look to next large directional move in the U.S dollar index, following the upcoming release of key U.S inflation and weekly jobs data.
The USDJPY pair is starting to make a bullish inverse head and shoulders pattern on the lower time frame price charts, with a three-hundred and fifty pip upside projection.
Key intraday technical resistance is found at the 100-day moving average, at 110.82 and the July swing high, at 111.04. Further resistance is found at the 200-day and 200-week moving average, at 111.53-54.
Key intraday technical support is located at the USDJPY 50-day moving average, at 110.25, and the pairs daily pivot point, at 109.90.
Once below the 109.90 level, further support is located at the 100 and 200-hour moving averages, at 109.47 and 109.47.