USD/JPY Forecast – Can US Dollar Gain Momentum above 112.70 Vs Japanese Yen?

USD/JPY Forecast – Can US Dollar Gain Momentum above 112.70 Vs Japanese Yen?

  • – The US Dollar has formed a decent support base around 112.00 against the Japanese Yen.
  • – There was a break above a major bearish trend line at 112.30 on the hourly chart of the USD/JPY pair.
  • – Recently in the US, the NAHB Housing Market Index for Dec 2017 was released by the National Association of Home Builders.
  • – The outcome was above the market forecast of 70 as there was a rise in the index to 74.

 

US NAHB Housing Market Index

Recently in the US, the NAHB Housing Market Index for Dec 2017 was released by the National Association of Home Builders. The market was positioned for the index to remain stable at 70 in Dec 2017.

 

The outcome was above the market forecast of 70 as there was a rise in the index to 74. On the other hand, the last reading was revised down to 69 from 70. Therefore, the overall increase was of 6 points in Dec 2017 to 74.

 

The USD/JPY pair is currently trading in the positive zone, but it has to break above 112.70 to gain upside traction.

 

USD/JPY Technical Analysis

The US Dollar after trading lower formed a base around the 112.00 level against the Japanese yen. The USD/JPY pair started an upside move and traded above the 112.30 resistance and a major bearish trend line at 112.30 on the hourly chart.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair also succeeded in breaking the 23.6% Fib retracement level of the last decline from the 113.74 high to 112.02 low. However, the pair is currently facing a major resistance around 112.70 and the 100 hourly simple moving average.

 

The 112.70 resistance also represents the 38.2% Fib retracement level of the last decline from the 113.74 high to 112.02 low. There is also a bearish trend line at 112.65, acting as a barrier for more gains in the near term.

 

Once there is a break above the 112.70 resistance and the pair closes above the 100 hourly SMA, there can be more upsides in the near term. On the downside, the 112.30 and the 112.10 levels are decent supports.


Also published on Medium.

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