Weekly Technical Outlook: USD/JPY; Market Forecasts for July 17th – July 22nd

• Resistance level 113.901
• Pivot Level 113.111
• Support Level 111.824, 111.479, and 111.020

Technical Analysis

The daily bias in USD/JPY remains bearish with 113.901 resistances intact and deeper decline is still expected for the pair as long as resistances hold the area.

The price action stays below the resistance so far at the end of the week and finds some support at the current levels. Such a decline is viewed as a correction.

The pair remains bearish with the break of 113.111 and indicates a near term bearish reversal with a downside bias rejection at the resistance area.

With the stochastic oscillator currently at 67.0 levels, the pair closed below the rejection of trend line.  There is a clear indication of trend reversal which is shifting the momentum.

Current developments suggest that the medium term downside are expected to be further low and the focus shall be at 111.824 levels. Any break here should make lower lows of 111.479 / 111.020 levels. The outlook remains bearish for the week.

Economic

• Building Permits Change, Continuing Jobless Claims
• Philadelphia Fed Manufacturing Survey
• Adjusted Merchandise Trade Balance, Merchandise Trade Balance Total
• Imports, Exports, BoJ Monetary Policy Statement, BoJ Interest Rate Decision

Area of Interest

• Strong resistance at 1.3206 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with two bar signal.
• Price action closed below trend line and oscillator below 77.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

For more detailed analysis from the author, please visit NoaFX.