USD/JPY Forecast – US Dollar Could Breakdown Vs Japanese Yen
- – The US Dollar is trading below the 107.00 level and it remains at a risk of more losses against the Japanese Yen.
- – There is a major bearish trend line forming with resistance near 107.25 on the hourly chart of the USD/JPY pair.
- – Recently in Japan, the Money Supply M2+CD report for March 2018 was released by the Bank of Japan.
- – The outcome was around the market forecast as there was a rise of 3.2% in the Money Supply M2+CD.
Japan’s Money Supply M2+CD
Recently in Japan, the Money Supply M2+CD report for March 2018 was released by the Bank of Japan. The market was positioned for a rise of 3.2% in the Money Supply M2+CD in March 2018 compared with the same month a year ago.
The result was around the market forecast as there was a rise of 3.2% in the Money Supply M2+CD. However, the last reading was revised down from 3.3% to 3.2%.
The USD/JPY pair is currently struggling to move higher and it seems like it may decline further towards or below 106.60 in the near term.
USD/JPY Technical Analysis
The US Dollar struggled a lot to break the 107.40 resistance area against the Japanese Yen. The USD/JPY pair made many attempts to move past 107.40-50, but buyers failed to gain momentum which resulted in a downside move.
On the downside, the 106.65 zone is acting as a strong support. The pair recently traded as low as 106.64 and corrected higher above 38.2% Fib retracement level of the last decline from the 107.39 high to 106.64 low. However, the upside move was capped by the 107.05 level and the 100 hourly simple moving average.
Moreover, the pair failed to break the 50% Fib retracement level of the last decline from the 107.39 high to 106.64 low. The pair is under pressure and it seems like it could retest the 106.65 support.
If sellers remain in control, there is a chance of a downside break in the near term. The next support sits at 106.20. On the upside, there is also a major bearish trend line forming with resistance near 107.25 on the hourly chart, which is a crucial barrier for buyers.
Also published on Medium.
