USD/JPY Technical Analysis: Intraday bounce remains capped below 200-DMA ahead of US retail salesOur preference: long positions above 111.00 with targets at 111.45 & 111.65 in extension.Alternative scenario: below 111.00 look for further downside with 110.85 & 110.75 as targets
• Despite Friday’s disappointing headline NFP print, the pair managed to defend and regain positive traction from a support
marked by the lower end of a short-term ascending trend-channel formation.
• Technical indicators on the daily chart maintained their bullish bias but are holding in the neutral territory on the
1-hourly chart and have also started gaining negative traction on the 4-hourly chart.
• Moreover, the fact that the attempted intraday bounce remained below the very important 200-day SMA also
warrant some caution before positioning for any further appreciating move for the major.
• Traders now look forward to today’s important release of the US monthly retail sales data, which might influence the USD
price dynamics and eventually provide some meaningful trading impetus.
• Sustained move beyond the mentioned hurdle might assist the pair to aim towards reclaiming the 112.00 handle,
though a decisive break below the trend-channel would mark a fresh bearish breakdown.