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  • The US Dollar Index notably retreated from session highs, ultimately closing below the 94 handle $USD $DXY https://t.co/TJC9PLyNV4
  • A hold above could see the DXY run back towards the recent high at 94.56 up to 94.67 where the much larger level lies. Get your #DXY market update from @PaulRobinsonFX here:https://t.co/xjgIQruBcs https://t.co/HZWF2yI9OL
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.18% 🇪🇺EUR: 0.10% 🇯🇵JPY: -0.05% 🇦🇺AUD: -0.10% 🇬🇧GBP: -0.13% 🇨🇦CAD: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pnaiUXmgi8
  • Maybe this time we will get a genuine resolution rather than a patch within two weeks of disaster, but my cynicism says it's going to be another crisis management event https://t.co/zbxdjXvuI6
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: -0.15% Oil - US Crude: -0.25% Silver: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/PEJAjja1Ms
  • US Treasury Sec. Yellen: - Congress needs to act in order to protect US credit $SPX $USD $DXY
  • Gold prices plummeted more than 2.2% off the monthly high last week with the XAU/USD reversing off multi-month downtrend resistance. Get your $XAUUSD market update from @MBForex here:https://t.co/3Uu8B8JeA2 https://t.co/LiegSCoacu
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.16%, while traders in GBP/JPY are at opposite extremes with 76.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/IpTnFwtoIf
  • US Treasury Sec. Yellen: - We will continue to use extraordinary measures through December 3 to avoid hitting the debt limit $USD $DXY
  • China's Treasuries holdings hit lowest since 2010, Japan at record high - BBG
USD/JPY Coiling Ahead of U.S. GDP- Breakout Levels to Watch

USD/JPY Coiling Ahead of U.S. GDP- Breakout Levels to Watch

Michael Boutros, Strategist
  • USDJPY consolidation at risk heading into U.S. GDP revision
  • Updated targets & invalidation
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USDJPY 30min

USD/JPY Coiling Ahead of U.S. GDP- Breakout Levels to Watch

Chart Created Using FXCM Marketscope 2.0

Technical Outlook: USDJPY is in consolidation near the bottom of an ascending channel formation extending off the 5/11 low ahead of tomorrow’s U.S. 1Q GDP revision. Consensus estimates are calling for a sizeable upward revision from 0.5% q/q to 0.9% q/q with personal consumption seen rising to 2.1% from 1.9%. We’ll be looking for a break of this range with risk weighted to the downside on a weaker-than-expected read. Remember, expectations for a Fed rate-hike next month have been on the rise and committee members remain adamant that the central bank will continue to be data dependent- so the numbers need to hold up.

While I do like USDJPY higher, a break below near-term support at 109.46/53 would risk a more prominent correction with such a scenario targeting support objectives at 108.96 & 108.65. Interim resistance stands at the weekly open at 110.09 (we failed there today) with a breach above 110.39 needed to clear the way for an advance towards 110.65 & channel resistance at 111.16. We’ll be continuing to track this pair and other USD setups daily on SB Trade Desk.

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USD/JPY Coiling Ahead of U.S. GDP- Breakout Levels to Watch
  • A summary of the DailyFX Speculative Sentiment Index (SSI)shows traders remain net long USDJPY- the ratio stands at +1.52 (60% of traders are long)-bearishreading
  • Yesterday the ratio was +1.36 (58% of open positions were long); long positions are 3.3% higher than yesterday
  • Open interest is 1.3% lower than yesterday and 2.6% below its monthly average.
  • Previously, pullbacks in from extremes in long-exposure have been hallmarks for near-term corrections/pauses in price. That said, the recent reduction in in long-positioning seems to be leveling off, suggesting the short-side in price remains a material threat near-term heading into the close of the week.

Relevant Data Releases This Week

USD/JPY Coiling Ahead of U.S. GDP- Breakout Levels to Watch

Other Setups in Play:

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---Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex contact him at mboutros@dailyfx.com or Click Here to be added to his email distribution list

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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