The U.S. National Association of Realtors reported that September existing home sales rose 3.2% to 5.47 million units from 5.30 million in August. The data came after the initial claim report which rose 13,000 at the week that ends at October 15 to 260,000. Previous week’s number was 247,000. The number is higher than analysts’ prediction at 250,000.

In addition, Philly Fed said that the business condition index at Philadelphia is at the number at 9.7 this month, lower than September’s figure at 12.8.

Technical Analysis:

Intraday bias for USDJPY currently is bullish. MA 20 has crossed above MA 50 on hourly chart. Price currently is moving above those MA and testing intraday key resistance at 104.192. If the resistance breaks, I expect the USDJPY will move higher, up to 104.437-104.588.

However, we can see that hourly stochastics and CCI are already overbought. Therefore, we should be prepared if any correction occurs today. In that case, we can wait for bullish signal confirmation on a pull-back move to within the intraday support area at 103.947-103.551 to go long with 104.192 as target and 104.437 in extension.

Be very careful if the price managed to break support at 103.551 because it will turn the intraday bias into bearish and possibly will push USDJPY lower to 103.400-103.155.

Trading Plan:

– Buy on break of 104.192; target at 104.437 or 104.588
– Buy on bullish signal confirmation within 103.947-103.551; target at 104.192 or 104.437

USDJPY Chart:

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