USD/JPY holds the decrease floor under 104.00 heading into the European open, often undermined via the continual weak point in the US greenback amid financial rebound expectations.
Further, upbeat Japanese Industrial Production and Retail Sales for October cheer the JPY bulls, weighing in addition on the spot. Meanwhile, falling S&P five hundred futures additionally collaborate with the draw back in the major.
From a near-term technical perspective, the spot is trending in a falling wedge formation over the ultimate one week on the hourly chart.
The charge is teasing a bearish breakdown, with the sample in all likelihood to get demonstrated on an hourly shut beneath the falling trendline aid at 103.82.
However, markets are now not ruling out a minor bounce, given that the Relative Strength Index (RSI) has bounced-off lows and heads greater in the direction of the midline.
The bearish 21-hourly transferring common (HMA) at 104.01 should assignment the recuperation attempt. Above which the vital barrier at 104.10 may want to be put to test.
It’s really worth noting that a loss of life go is in the offing as the 50-HMA tends closer to the 200-HMA, searching to reduce the latter from above.