USD/JPY Forecast – US Dollar Downsides Limited Below 112.70 Vs Japanese Yen

USD/JPY Forecast – US Dollar Downsides Limited Below 112.70 Vs Japanese Yen

  • – The US Dollar traded higher and moved above the 112.50 resistance against the Japanese Yen.
  • – There is a major bullish trend line forming with support at 112.70 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Merchandise Trade Balance Total for Sep 2017 was released by the Ministry of Finance.
  • – The outcome was above the forecast of ¥559.8B as there was a trade surplus of ¥670.2B.

 

Japanese Merchandise Trade Balance

Today in Japan, the Merchandise Trade Balance Total for Sep 2017 was released by the Ministry of Finance. The market was positioned for a trade surplus of ¥559.8B, compared with the last surplus of ¥112.3B.

 

The outcome was above the forecast of ¥559.8B as there was a trade surplus of ¥670.2B. Exports of goods and services in Sep 2017 rose 14.1%, less than the forecast of 14.9%. Imports of goods and services in Sep 2017 rose 12%, less than the forecast of 15%.

 

Overall, the USD/JPY pair might correct a few pips in the near term, but remains supported above 112.70.

 

USD/JPY Technical Analysis

The US Dollar gained decent upside momentum this week and traded above the 112.50 resistance against the Japanese yen. The USD/JPY pair traded as high as 113.08 and is currently correcting lower towards 112.80-70.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

An initial support is around the 23.6% Fib retracement level of the last wave from the 112.12 low to 113.08 high. There is also a major bullish trend line forming with support at 112.70 on the hourly chart.

 

The trend line support is near the 38.2% Fib retracement level of the last wave from the 112.12 low to 113.08 high. Therefore, if the pair continues to moves down, there are chances of it finding bids near the 112.80-70 levels.

 

On the upside, the 113.00 handle is an initial resistance followed by the last swing high of 113.08. A close above 113.80 could take the pair towards the next resistance at 113.50. Overall, buying dips in the near term towards the 112.80-70 levels can be considered with a stop below the trend line support.

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