USD/JPY - key hurdle intact, bulls take a breather

Dollar-Yen pair spent last ten hours or so flirting with 105.35 (23.6% of 2015 high - 2016 low) before bulls decided to have a breather. 

The spot is losing height at a snail’s speed, now trading around 105.10 levels. 

Eyes US data

USD/JPY is a Fed play in a sense that the Bank of Japan (BOJ) has lost control of its currency. The lifting job is almost entirely dependent on the Fed. As of now, markets are predicting a Fed rate hike in December. But the odds could move both ways depending on the US election results, domestic macro data and international developments. 

The focus today is on the US Q3 GDP, which is widely expected to show the economy could have grown at the fastest rate in two years. 

USD/JPY Technical Levels

A break below 105.00 (zero figure) could result in a deeper retracement to short-term moving average levels- 104.66 (5-DMA) and 104.22 (10-DMA). On the other hand, breach of resistance at 105.35 (23.6% of 2015 high - 2016 low) would expose monthly 200-MA positioned  at 105.83. A break above the same needs to be treated with caution unless we get a weekly close above the same, in which case the upside towards 107.00 (zero figure) stands exposed.