USD/JPY Forecast – Can US Dollar Hold This Vs Japanese Yen

USD/JPY Forecast – Can US Dollar Hold This Vs Japanese Yen

  • – The US Dollar is in an uptrend and recently traded towards 110.70 against the Japanese Yen.
  • – There is a major ascending channel forming with support at 110.40 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Industrial Production report for July 2017 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was around the forecast, as there was a decline in the Industrial Production by 0.8% (MoM).

 

Japan’s Industrial Production

Today in Japan, the Industrial Production report for July 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a decline of 0.8% compared with the previous month.

 

The actual result was around the forecast, as there was a decline in the Industrial Production by 0.8%. Looking at the yearly change in the production, there was a rise of 4.7% in July 2017, similar to the last +4.7%. On the other hand, the Capacity Utilization declined by 1.8% in July 2017, compared with the last increase of 2.1%.

 

Overall, the USD/JPY pair might correct a few pips towards 110.00, but downsides remain supported in the near term.

 

USD/JPY Technical Analysis

The US Dollar made a decent ground this week and moved above the 110.00 resistance level against the Japanese yen. The USD/JPY pair recently traded as high as 110.72 where it faced sellers and currently consolidating gains.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

At the moment, the pair is trading near the 23.6% Fib retracement level of the last wave from the 109.35 low to 110.72 high. Moreover, there is a major ascending channel forming with support at 110.40 on the hourly chart.

 

It seems like sellers might succeed in breaking the channel support at 110.40. In the mentioned scenario, the next immediate support sits at 110.20, which is near the 38.2% Fib retracement level of the last wave from the 109.35 low to 110.72 high.

 

However, the most important support is near 110.00, which is just around the 50% Fib level of the same wave. The overall trend is still bullish for USD/JPY, but there can be a few downside corrections in the short term.

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