USD/JPY Forecast – US Dollar Approaching Crucial Resistance Vs Japanese Yen

USD/JPY Forecast – US Dollar Approaching Crucial Resistance Vs Japanese Yen

  • – The US Dollar started a new upside wave from the 104.63 swing low against the Japanese Yen.
  • – There was a break above a key bearish trend line with resistance near 104.85 on the hourly chart of the USD/JPY pair.
  • – Recently in Japan, the Corporate Service Price Index (CSPI) for Jan 2018 was released by the Bank of Japan.
  • – The outcome was below the market forecast of +0.7% as there was a rise in the index by 0.6%.

 

Japan’s Corporate Service Price Index

Recently in Japan, the Corporate Service Price Index (CSPI) for Jan 2018 was released by the Bank of Japan. The market was positioned for a rise of 0.7% in the CSPI, similar to the last reading.

 

The result was below the market forecast of +0.7% as there was a rise in the index by 0.6%. Moreover, looking at the Services Producer Price Index (All items <excluding International transportation>), it posted an increase of 0.6% from the previous year.

 

The USD/JPY pair remains in a decent uptrend, but the pair is now approaching a crucial barrier near the 105.75-85.

 

USD/JPY Technical Analysis

The US Dollar formed a decent support after a major decline towards the 104.50 level against the Japanese Yen. The USD/JPY pair started an upside move and traded above the 105.00 resistance level to set the pace for more gains.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

The pair recently also traded above the 38.2% Fib retracement level of the last decline from the 106.63 high to 104.63 low. The upside move was positive since the pair broke a key bearish trend line with resistance near 104.85 on the hourly chart.

 

The pair also succeeded in trading above 105.20 and the 100 hourly simple moving average. At the moment, the pair is flirting with the 50% Fib retracement level of the last decline from the 106.63 high to 104.63 low.

 

On the upside, the previous support area at 105.75 is likely to act as a major hurdle along with another bearish trend line with current resistance at 105.85. The overall bias is positive above 105.00, but it won’t be easy for buyers to break the 105.75-85 resistance.


Also published on Medium.

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