USDJPY resistance holds up, retracement under way

  • Daily resistance level has been tested for close to a week with anticipation of a lack of selling pressure
  • Pair finally sells off earlier this morning despite slightly stronger retail sales change at 0.2% and CPI on expectation at 0.1%
  • US dollar still sold off as weaker sales and inflation figures point to lower probability of another rate hike especially as the retail sector struggles ahead of the holidays
  • Over on the hourly, pair is currently in retracement after breaking below horizontal channel
  • If this is an over-reaction, price should break the 113.3~ price level and daily candle will form as doji
  • I still remain bullish provided this pair makes a full recovery on the sell-off on news

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