USD/JPY Forecast – US Dollar Moved Into Bearish Zone Vs Japanese Yen

USD/JPY Forecast – US Dollar Moved Into Bearish Zone Vs Japanese Yen

  • – The US Dollar after trading as high as 110.94 against the Japanese Yen found sellers and moved down.
  • – There was a break below a crucial bullish trend line with support at 110.70 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Merchandise Trade Balance Total figure for July 2017 was released by the Ministry of Finance.
  • – The outcome was above the forecast of ¥392.0B, as the trade surplus was ¥418.8B.

 

Japan’s Merchandise Trade Balance

Today in Japan, the Merchandise Trade Balance Total figure for July 2017 was released by the Ministry of Finance. The market was positioned for a trade surplus of ¥392.0B, compared with the last surplus of ¥439.9B.

 

The actual result was above the forecast of ¥392.0B, as the trade surplus was ¥418.8B. Similarly, the Adjusted Merchandise Trade Balance posted a better than expected trade surplus of ¥337.4B, more than the forecast of ¥195.3B and the last was ¥81.4B. Imports of goods and services in July 2017 (YoY) increased 16.3%, less than the forecast of 17%.  Exports of goods and services in July 2017 (YoY) increased 13.4%, less than the forecast of 13.6%.

 

Overall, the result was positive, and may continue to weigh on the USD/JPY pair as long as it is below 110.00.

 

USD/JPY Technical Analysis

The US Dollar traded nicely earlier this week and moved above the 110.50 level and the 100 hourly simple moving average against the Japanese yen. Later, the USD/JPY pair after trading as high as 110.94 found sellers and started a downside move.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair traded down and broke the 23.6% Fib retracement level of the last wave from the 108.72 low to 110.94 high. During the downside move, there was also a break below a major bullish trend line with support at 110.70 on the hourly chart.

 

The pair even traded below the 100 hourly simple moving average and the 50% Fib retracement level of the last wave from the 108.72 low to 110.94 high.

 

At the moment, buyers are protecting losses below a major support area of 109.65-60. There is a chance of a minor bounce in USD/JPY before the pair dives down one more time. On the upside, the broken support at 110.00 is a crucial resistance going forward.

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