USD/JPY Forecast – US Dollar Could Break Higher Vs Japanese Yen

USD/JPY Forecast – US Dollar Could Break Higher Vs Japanese Yen

  • – The US Dollar is placed nicely in a positive bias above the 110.72 support against the Japanese Yen.
  • – There is a key bearish trend line formed with resistance near 111.15 on the hourly chart of the USD/JPY pair.
  • – Recently in Japan, the Retail Trade report for June 2018 was released by the Ministry of Economy, Trade and Industry.
  • – The outcome was above the market forecast of +0.1% as there was a 1.5% (MoM) rise in the Retail Trade.

 

Japan’s Retail Trade

Recently in Japan, the Retail Trade report for June 2018 was released by the Ministry of Economy, Trade and Industry. The market was positioned for a rise of around 0.1% in the Retail Trade compared with the previous month.

 

The actual result was above the market forecast of +0.1% as there was a 1.5% (MoM) rise in the Retail Trade. Looking at the yearly change, there was a rise of 1.8%, which was more than the forecast of +1.6% and also more than the last +0.6%.

 

The USD/JPY pair is currently well supported on the downside, and it seems like the pair may perhaps make an attempt to break above 111.15 and 111.30.

 

USD/JPY Technical Analysis

The US Dollar dipped towards the 110.60 level this past week against the Japanese Yen. The USD/JPY pair formed a support base and climbed above the 110.72 and 110.90 resistance levels to move into a positive zone.

 

USD/JPY Technical Analysis US Dollar Japanese Yen

 

However, the upside move was capped by the 111.15 and 111.20 resistance levels. Moreover, there is a key bearish trend line formed with resistance near 111.15 on the hourly chart of the USD/JPY pair. The pair recently climbed above the 50% Fib retracement level of the last decline from the 111.25 high to 110.79 low.

 

Therefore, there are high chances of it gaining momentum above the trend line, 111.20, and the 100 hourly simple moving average. Above this, the pair could trade towards 111.35 and the 1.236 Fib extension level of the last decline from the 111.25 high to 110.79 low.

 

Overall, USD/JPY remains well supported on the downside near the 110.70 level and it could move higher above the 111.15-20 levels in the near term.


Also published on Medium.

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