USD/JPY Forecast – US Dollar To Retest 111.00 Vs Japanese Yen?
- – The US Dollar is trading lower and remains well below the 111.80-112.00 resistance against the Japanese Yen.
- – There is a crucial bearish trend line forming with resistance at 111.80 on the hourly chart of the USD/JPY pair.
- – Today in Japan, the Corporate Service Price Index (CSPI) for Sep 2017 was released by the Bank of Japan.
- – The outcome was around the market forecast, as there was a rise of 0.8% in the index in Sep 2017 (YoY).
Japan’s Corporate Service Price Index
Today in Japan, the Corporate Service Price Index (CSPI) for Sep 2017 was released by the Bank of Japan. The market was positioned for the index to increase by 0.8% in Sep 2017 compared with the same month a year ago.
The outcome was around the market forecast, as there was a rise of 0.8% in the index in Sep 2017. However, this was a lit lower than the previous increase of 0.9%. Looking at the Services Producer Price Index for all items excluding International transportation, there was a rise of 0.7% in Sep 2017 compared with the same month a year ago.
The USD/JPY pair is currently under pressure and it is likely to continue moving down towards the last swing low of 111.06.
USD/JPY Technical Analysis
The US Dollar started a major downside move from the 112.70 swing high against the Japanese yen. The USD/JPY pair traded below a couple of important support levels such as 112.20 and 111.80. It traded as low as 111.06 from where a recovery was initiated.
The pair traded above the 23.6% Fib retracement level of the last decline from the 112.71 high to 111.06 low. However, the upside move is facing many resistances on the upside around the 111.60 and 111.80 levels along with the 100 hourly simple moving average.
The 38.2% Fib retracement level of the last decline from the 112.71 high to 111.06 low acted as a hurdle recently. There is also a crucial bearish trend line forming with resistance at 111.80 on the hourly chart.
Therefore, any major upsides might face sellers near the 111.80 and 112.00 levels in the near term. On the downside, the recent low of 111.06 could be tested followed by 111.00.
Also published on Medium.
