USD/JPY Forecast – US Dollar To Trade Higher Vs Japanese Yen?

USD/JPY Forecast – US Dollar To Trade Higher Vs Japanese Yen?

  • – The US Dollar found support near 113.10 against the Japanese Yen and moved higher.
  • – There was a break above two bearish trend lines with resistance near 113.40 on the hourly chart of the USD/JPY pair.
  • – Today in Japan, the Domestic Corporate Goods Price Index for Oct 2017 was released by the Bank of Japan.
  • – The outcome was above the forecast of +3.1% as there was an increase in the index by 3.4% (YoY).

 

Japanese Domestic Corporate Goods Price Index

Today in Japan, the Domestic Corporate Goods Price Index for Oct 2017 was released by the Bank of Japan. The market was positioned for the index to increase by 3.1% compared with the same month a year ago.

 

The outcome was above the forecast of +3.1% as there was an increase in the index by 3.4%, which is also better than the last +3%. Looking at the monthly change, there was a rise of 0.3% in the index, which was better than the forecast of +0.1% and also above the last +0.2%.

 

The USD/JPY pair is currently in the positive zone, and if it moves above 113.75, there can be more gains in the near term.

 

USD/JPY Technical Analysis

The US Dollar after a slow and steady decline traded below the 114.00 handle against the Japanese yen. The USD/JPY pair traded toward the 113.00 handle and formed a low at 113.08 before starting an upside correction

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair has moved above the 23.6% Fib retracement level of the last decline from the 114.73 high to 113.08 low and cleared two bearish trend lines with resistance near 113.40 on the hourly chart. At present, the pair is trading near the 113.70-75 resistance and the 100 hourly simple moving average.

 

Moreover, the 38.2% Fib retracement level of the last decline from the 114.73 high to 113.08 low is near 113.71. Therefore, a close above 113.75 is needed for more gains in USD/JPY.

 

On the upside, the next upside target could be 113.95 and the 114.10 levels. On the downside, the 113.50 level is a decent support followed by the 113.10 swing low.

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