USD/JPY Forecast – US Dollar In Major Uptrend Vs Japanese Yen
- – The US Dollar is positioned nicely above the 110.60 support against the Japanese Yen.
- – There is a major bullish trend line in place with support at 110.75 on the hourly chart of the USD/JPY pair.
- – Recently in Japan, the Tankan Large All Industry Capital Expenditure for Q2 2018 was released by the Bank of Japan.
- – The outcome was above the market forecast of +9.3% as there was a rise in the Tankan Large All Industry Capital Expenditure by 13.6%.
Japan’s Tankan Large All Industry Capital Expenditure
Recently in Japan, the Tankan Large All Industry Capital Expenditure for Q2 2018 was released by the Bank of Japan. The market was positioned for a rise of around 9.3% in the index in Q2 2018 compared with the last reading of 2.3%.
The actual result was above the market forecast of +9.3% as there was a rise in the Tankan Large All Industry Capital Expenditure by 13.6%. Looking at the Tankan Non-Manufacturing Index, there was a rise from the last reading of 23 to 24 in Q2 2018.
The USD/JPY pair made a nice upside move above the 110.50 pivot level and is currently placed in an uptrend above the 110.60 level.
USD/JPY Technical Analysis
The US Dollar formed a decent support base around the 110.20 level against the Japanese Yen. The USD/JPY pair started an upside move and traded above the 110.50 and 110.60 resistance levels to move into a bullish zone.
The pair settled above the 100 hourly simple moving average and formed a high at 111.05. At the moment, the pair is correcting lower and is trading around the 23.6% Fib retracement level of the last wave from the 110.66 low to 111.05 high.
On the downside, there are many supports around the 110.70 level. There is also a major bullish trend line in place with support at 110.75 on the hourly chart of the USD/JPY pair. The same trend line is close to the 50% Fib retracement level of the last wave from the 110.66 low to 111.05 high.
Overall, the pair remains well supported above the 110.70 level and it could continue to move higher towards 111.20 level in the near term.
Also published on Medium.
