USD/JPY rebounds from 7-day ema, but deeper correction is likely

FX:USDJPY   U.S. Dollar/Japanese Yen
Japan's unemployment rate held steady in October as the availability of jobs improved and household spending fell at a slower pace, a tentative sign that a robust labour market is lending support to domestic demand.
The seasonally adjusted unemployment rate in October was 3.0%, unchanged from the previous month and in line with market expectations. The jobs-to-applicants ratio rose to 1.40 from 1.38 in the previous month to reach the highest level since August 1991.
Household spending fell 0.4% in October from a year earlier, less than the median market estimate for a 0.6% annual decline
Separate data showed retail sales fell 0.1% in October from a year ago, less than the median estimate for a 1.2% annual decline and less than a 1.7% annual decline in the previous month.
Rising spending on clothes, food and transportation lead to the slower decline in overall retail sales, the data showed.
Signs that the pace of decline in household spending is easing would be welcome for Japan's fragile economic outlook.
Japan's economy expanded for a third straight quarter in July-September as exports recovered, but domestic activity remained weak.
Later on Tuesday, investors will look to U.S. third-quarter GDP data as well as readings on consumer confidence and consumption for trading cues. They will be followed by the November employment report on Friday.
The USD/JPY             drop stopped at 7-day exponential moving average yesterday, but we think a deeper corrective move is likely. However, our and long-term outlook remains bullish . We keep USD/JPY             bid near 14-day exponential moving average (currently at 110.48). - Daily Forex Trading Strategies
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