USD/JPY Forecast – US Dollar Approaching Crucial Break Vs Japanese Yen
- – The US Dollar is moving higher from 112.00 and is approaching a major break against the Japanese Yen.
- – There is a monster contracting triangle forming with resistance at 112.50 on the hourly chart of the USD/JPY pair.
- – Today in Japan, the Foreign investment in Japan stocks (Dec 1, 2017) was released by Ministry of Finance.
- – The outcome was around the market forecast, as the Foreign investment in Japan stocks were ¥-167.1B.
Japan’s Foreign Investment in Japan Stocks
Today in Japan, the Foreign investment in Japan stocks (Dec 1, 2017) was released by Ministry of Finance. The market was positioned for the Foreign investment in Japan stocks to be around ¥-160.0B compared with the last ¥-155.2B.
The outcome was around the market forecast, as the Foreign investment in Japan stocks were ¥-167.1B. The last reading was revised from ¥-155.2B to ¥-155.3B. Looking at the Foreign bond investment, it came in at ¥-208.1B, compared with the last revised reading of ¥138.0B.
The USD/JPY pair is preparing for the next move, and it might soon break either 112.50 or move below 112.10.
USD/JPY Technical Analysis
The US Dollar made a nice upside move and traded above the 113.00 level against the Japanese yen. The USD/JPY pair traded as high as 113.08 and later started a downside correction. The stated correction was such that the pair moved a few pips below the 112.00 support.
A low as formed near 111.98 and the pair started moving higher. It has already traded above the 38.2% Fib retracement level of the last decline from the 112.86 high to 111.98 low. However, the 100 hourly simple moving average is protecting gains near 112.50.
It seems like there is a monster contracting triangle forming with resistance at 112.50 on the hourly chart. On the downside, the triangle support is at 112.10. Therefore, we might soon witness a break either above 112.50 or below 112.10 in the near term.
The current market sentiment is positive for USD/JPY, but it won’t be easy for buyers to break 112.50, triangle, 100 hourly SMA and the 61.8% Fib retracement level of the last decline from the 112.86 high to 111.98 low.
Also published on Medium.
