USD/JPY Forecast – US Dollar Eyes More Gains Above 111.40 Vs Japanese Yen

USD/JPY Forecast – US Dollar Eyes More Gains Above 111.40 Vs Japanese Yen

  • – The US Dollar formed a strong support near 110.94 level and climbed higher against the Japanese Yen.
  • – There was a break above a crucial declining channel with resistance at 111.15 on the hourly chart of the USD/JPY pair.
  • – Recently in the US, the Chicago Fed National Activity Index (CFNAI) for July 2018 was released by Federal Reserve Bank of Chicago.
  • – The outcome was around the market forecast as the index declined from the last revised reading of 0.48 to 0.13.

 

US Chicago Fed National Activity Index (CFNAI)

Recently in the US, the Chicago Fed National Activity Index (CFNAI) for July 2018 was released by Federal Reserve Bank of Chicago. The market was positioned for a decline from the last reading of 0.43 to 0.13 in July 2018.

 

The actual result was around the market forecast as the index declined from the last revised reading of 0.48 to 0.13. The last reading was revised up from 0.43 to 0.48, which means the net decline was more than the market’s expectation.

 

The USD/JPY pair remains supported and it seems like the pair is currently positioned for more gains above the 111.30 and 111.40 levels.

 

USD/JPY Technical Analysis

The US Dollar tested a major pivot level near the 110.94 level on a couple of occasions against the Japanese Yen. The USD/JPY pair failed to break the 110.94 and 110.90 support levels and later started an upside move.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair climbed higher and broke the 111.00 resistance and settled above the 100 hourly simple moving average. Moreover, there was a break above a crucial declining channel with resistance at 111.15 on the hourly chart of the USD/JPY pair.

 

The pair also broke the 61.8% Fib retracement level of the last decline from the 111.47 high to 110.93 low. It has opened the doors for more gains and it seems like the pair may well climb towards the 111.40 and 111.50 level.

 

It could even test the 1.236 Fib extension level of the last decline from the 111.47 high to 110.93 low at 111.60. If there is a downside correction, the broken resistance near 111.15 is likely to act as a support in the short term.


Also published on Medium.

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