USD/JPY Forecast – US Dollar Struggling To Break 112.60-70 Vs Japanese Yen
- – The US Dollar traded above the 111.70 resistance recently against the Japanese Yen.
- – There was a break below a key bullish trend line with support at 112.50 on the hourly chart of the USD/JPY pair.
- – Today in Japan, the Prelim Machine Tool Orders report for Sep 2017 was released by the Japan Machine Tool Builders” Association.
- – The outcome was above the forecast of 38% as there was a rise in the orders by 45.3%.
Japanese Machine Tool Orders
Today in Japan, the Prelim Machine Tool Orders report for Sep 2017 was released by the Japan Machine Tool Builders” Association. The market was positioned for a rise of around 38% compared with the same month a year ago.
The outcome was above the forecast of 38% since there was a rise in the orders by 45.3%. It was also above the last +36.3%. Earlier, the Machinery new orders figure for August 2017 posted a rise of 4.4% compared with the same month a year ago. It was above the forecast of 0.8% and a lot better than the last decline of 7.5%.
Overall, the USD/JPY pair might continue to struggle in the short term and could even retest the 112.00 support area.
USD/JPY Technical Analysis
The US Dollar recently attempted a break of the 112.80 resistance against the Japanese yen. The USD/JPY pair failed to gain momentum and started a downside move below the 112.60 level.
The pair declined and traded below a key bullish trend line with support at 112.50 on the hourly chart. A low was formed at 111.97 before the pair started a correction. It recovered well and traded above the 50% Fib retracement level of the last decline from the 112.82 high to 111.97 low.
However, a bearish trend line at 112.60 prevented gains along with the 61.8% Fib retracement level of the last decline from the 112.82 high to 111.97 low. Moreover, the 100 hourly simple moving average is at 112.62 to act as a major hurdle for buyers.
As long as the pair is below the trend line resistance at 112.60 and the 100 hourly SMA, there is a chance of USD/JPY retesting the 112.00 support area.
