Weekly Technical Outlook: USD/JPY ; Market Forecasts for October 30th – November 3rd

• Resistance level 113.875
• Pivot Level 113.596
• Support Level 113.111, 112.639 and 112.347

Technical Analysis

Daily bias in USD/JPY remains bearish with 113.875 resistances intact. A deeper decline is still expected for the pair as long as resistances hold the area with price action staying below resistances so far at the end of the week. Such a decline is viewed as a correction.

Thus, we’d expect resistance to hold the area and the pair remains bearish with a break of 113.596. This indicates that near term bearish reversal has taken place. The pair will now turn its outlook to continue with the downside bias price action. Bearish movement rejection at resistance area is closed below the trend line and the stochastic oscillator is currently at 68.0 levels.

The pair closing below the rejection of trend line is a clear indication of trend reversal shifting the momentum. Current development suggests that medium term downside is expected further low and the focus shall be at 113.111. The pair would break here and should make lower lows at 112.639 levels. Outlook remains bearish for the week.

Economic

• Core Personal Consumption Expenditure, ADP Employment Change
• ISM Manufacturing PMI, Fed Interest Rate Decision, Fed’s Monetary Policy Statement
• Initial Jobless Claims, Nonfarm Payrolls, Unemployment Rate
• Retail Trade, BoJ Interest Rate Decision
• BoJ Monetary Policy Statement, Foreign investment in Japan stocks

Area of Interest

• Strong resistance at 113.875 area and closed below resistance levels.
• Bearish momentum reversal with pin bar reversal strongly closing below the trend line.
• Price action closed below trend line and oscillator below 68.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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