USD-JPY Technical predictions october 16 2012

forex trading outlook today- USD-JPY Technical predictions october 16 2012 :  The USD/JPY has just consolidated off its freshly established session high at 78.88, in the aftermath of the indicator release in the United States, that generally bested expectations overall. Following a 12-pip pullback, the pair is presently operating in the region of 78.74, netting a +0.38% advance on the day.

 the next resistances at 79.00, followed by 79.25 and 79.55. A further consolidation movement or retracement will ultimately usher in supportive measures at 78.50, then 78.20, and finally 78.00.

In the United States, Retail Sales (MoM) rose +1.1% in the month of September, beating a consensus estimate of only +0.8%. In addition, Retail Sales ex-Autos (MoM) also climbed +1.1% in September, exceeding its expectations of +0.6%. Finally, the New York Empire State Manufacturing Index yielded a figure of -6.16 in October, missing projections that called for -4.55.

In accordance with our bullish anticipations, the USD/JPY has inclined and is currently attacking the upper line of the potential falling wedge pattern which meets SMA 100 as seen on the provided daily chart. Moreover, the RSI 14 remains positive, whilst MACD is on the way to provide a confirmed buying signal. Hence, we remain bullish over intraday and short-term basis as far as the 77.60 level holds.

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