USD/JPY Forecast – US Dollar Could Decline Further Vs Japanese Yen

USD/JPY Forecast – US Dollar Could Decline Further Vs Japanese Yen

  • – The US Dollar remained in a downtrend and broke the 109.40 support against the Japanese Yen.
  • – There was a break below a major bullish trend line with support at 109.40 on the hourly chart of the USD/JPY pair.
  • – Recently in Japan, the Jobs/application ratio for April 2018 was released by the Japan Institute of Labor.
  • – The outcome was below the market forecast of 1.60 as the ratio was unchanged from 1.59.

 

Japan’s Jobs/Application Ratio

Recently in Japan, the Jobs/application ratio for April 2018 was released by the Japan Institute of Labor. The market was positioned for a rise in the ratio from the last reading of 1.59 to 1.60 in April 2017.

 

The actual result was below the market forecast of 1.60 as the ratio was unchanged from 1.59. The unemployment rate also remained at 2.5%, which was in line with the market forecast.

 

The USD/JPY pair is clearly under pressure and it seems like it could extend the current decline below the 109.00 level in the near term.

 

USD/JPY Technical Analysis

The US Dollar started a major downside move from the 110.00 handle against the Japanese Yen. The USD/JPY pair declined and broke a few key supports such as 109.60 to settle below the 100 hourly simple moving average.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

During the downside move, there was a break below a major bullish trend line with support at 109.40 on the hourly chart of the USD/JPY pair. The pair traded below the 109.00 level and formed a new weekly low at 108.92.

 

At the moment, the pair is consolidating losses and it recently tested the 23.6% Fib retracement level of the last decline from the 109.46 high to 108.92 low. It may correct a few more pips, but upsides are likely to be capped by the 109.20 and 109.30 levels.

 

Moreover, the 50% Fib retracement level of the last decline from the 109.46 high to 108.92 low is at 109.19 to prevent upsides. Further above, there is a bearish trend line with resistance at 109.35, which may act as a strong hurdle for buyers. On the downside, the next major support sits at 108.50.


Also published on Medium.

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