USD/JPY Forecast – US Dollar Following Bullish Channel Vs Japanese Yen

USD/JPY Forecast – US Dollar Following Bullish Channel Vs Japanese Yen

  • – The US Dollar remains in an uptrend above 113.50 against the Japanese Yen.
  • – There is a major ascending channel forming with support at 113.50 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Retail Trade report for Sep 2017 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was below the forecast of +2.5% as there was an increase in the trade by 2.2% (YoY).

 

Japanese Retail Trade

Today in Japan, the Retail Trade report for Sep 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a retail trade to increase by 2.2% compared with the same month a year ago.

 

The outcome was below the forecast of +2.5% as there was an increase in the trade by 2.2%, but this was more than the last revised 1.8%. Looking at the monthly change, there was a rise of 0.8% in the retail trade in Sep 2017, which was better than the last decline of 1.7%.

 

The USD/JPY pair declined a few pips, but the pair remains well supported above the 113.50 level in the short term.

 

USD/JPY Technical Analysis

The US Dollar is following a decent uptrend above 112.80 and 113.50 support levels against the Japanese yen. The USD/JPY pair recently traded as high as 114.49 before starting a short-term correction towards 113.50.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

During the downside move, the pair broke the 114.40 support and moved towards 113.50. At present, a major ascending channel with support at 113.50 on the hourly chart of the USD/JPY pair is acting as a key barrier for sellers and preventing further declines.

 

The channel support might produce a bounce towards 114.00 in the short term. An initial resistance is near the 23.6% Fib retracement level of the last decline from the 114.49 high to 113.52 low at 113.74. Above the mentioned 113.74, the 100 hourly simple moving average is at 113.80 to act as a resistance.

 

It seems like there can be a couple of swing moves between 113.50-114.00 before the pair moves higher and challenge the channel resistance once again.

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