USD/JPY has been quite corrective and volatile recently after rejecting off the 114.50 resistance area for several times. USD has been quite mixed with the economic reports whereas JPY could not gain in the moment due to worse economic reports. Today JPY PPI report was published with a positive outcome of 3.4% which was an increase from the previous value of 3.1% which was expected to be unchanged and Prelim Machinery Tools Orders report is going to be published which is also expected to have an increased value from the previous value of 45.0%. Along with these economic reports, today Bank of Japan Governor Kuroda is going to speak about the upcoming interest rates decisions and monetary policies which are expected to be quite neutral in nature. On the USD side, today FOMC Member Harker is going to speak about the upcoming interest rates decisions and monetary policies which are expected to be quite hawkish in nature providing a hint about the December Rate Hike. This week USD has several high impact economic reports to be published, like Retail Sales, Building Permits, Unemployment Claims etc. which are expected to help the gains of the USD in the coming days. To sum up, USD economic reports are forecasted with mixed expectations and any negative outcome of the reports may lead to further gains on JPY side and positive outcomes of USD report is expected to push the price higher. As of the current scenario, USD has a higher probability of gaining over JPY in the coming days.

Now let us look at the technical view, the price is currently residing inside the corrective range of 113.00 to 114.50 area where the dynamic level of 20 EMA is acting as a reliable support to hold the price higher recently. As the price remains above the dynamic level of 20 EMA with a daily close the bullish bias is expected to continue with the target towards 114.50 and later to break above it with the target towards 115.50 resistance area. On the other hand, if the price breaks below 113.00 with a daily close then we will be looking forward to selling with the target towards 111.60 support area in the future.