USD/JPY To Consolidate With Risks Skewed Higher This Week

USD/JPY To Consolidate With Risks Skewed Higher This Week
USD/JPY (last 84.44) is likely to consolidate with risks skewed higher this week as the daily MACD and stochastic indicators are bullish. Resistance is at Friday's high of 85.22; a breach would target the Aug. 30 high of 85.92, and then the 86.39-86.49 resistance band, marked by the Aug. 13 high and the Aug. 5 high. An extension of the rise would target the Aug. 2 high of 86.88, currently near the 55-day moving average; and then the July 28 reaction high of 88.11. Support is at the 83.67-58 band, marked by Wednesday's low and the 15-year low set Aug. 24; a breach would turn the near-term outlook negative, exposing the downside to the psychological round-numbered levels from 83.00 down to 80.00. USD/JPY medium-term outlook remains negative as the weekly stochastic measure stays suppressed at the oversold level and the weekly MACD indicator is still bearish; meanwhile, the five-week moving average is below the 15-week moving average and falling. A drop below the 83.58 support would open the way down to the psychological 80.00 level, and then to the April 19, 1995 record low of 79.70 in coming weeks.