USD/JPY Forecast – US Dollar Testing Key Support Vs Japanese Yen

USD/JPY Forecast – US Dollar Testing Key Support Vs Japanese Yen

  • – The US Dollar is in a major uptrend and it recently traded above 113.00 against the Japanese Yen.
  • – There is a short-term bearish trend line formed with resistance near 112.75 on the hourly chart of the USD/JPY pair.
  • – Recently in Japan, the Merchandise Trade Balance Total for June 2018 was released by the Ministry of Finance.
  • – The outcome was above the market forecast of ¥534.2B as there was a trade surplus of ¥721.4B.

 

Japan’s Merchandise Trade Balance Total

Recently in Japan, the Merchandise Trade Balance Total for June 2018 was released by the Ministry of Finance. The market was positioned for a trade surplus of ¥534.2B compared with the last reading of ¥578.3B.

 

The actual result was above the market forecast of ¥534.2B as there was a trade surplus of ¥721.4B. The last reading was also revised up from ¥578.3B to ¥580.5B. Imports of goods and services in June 2018 increased 2.5% (YoY), less than the forecast of 5.3%. Exports of goods and services in June 2018 increased 6.7% (YoY), less than the forecast of 7.0%.

 

The USD/JPY pair is currently correcting lower is trading near a major support area at 112.65 and the 100 hourly simple moving average.

 

USD/JPY Technical Analysis

The US Dollar climbed higher recently and broke the 112.80 and 113.00 resistances against the Japanese Yen. The USD/JPY pair traded as high as 113.13 before sellers appeared. The pair started a downside correction and moved below the 112.80 support area.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

During the decline, the pair broke the 23.6% Fib retracement level of the last wave from the 112.21 low to 113.13 high. However, the pair reached as crucial support area near 112.65 and the 100 hourly SMA.

 

Moreover, the 50% Fib retracement level of the last wave from the 112.21 low to 113.13 high is acting as a support near the 112.67 level. Below this, the next key support is near the 112.55 level, which was a resistance earlier.

 

On the upside, there is a short-term bearish trend line formed with resistance near 112.75 on the hourly chart of the USD/JPY pair. A break above this could open the doors for a fresh upward move towards the 113.00 level in the near term.


Also published on Medium.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry