USD/JPY Forecast — US Dollar Dips Remain Supported Vs Japanese Yen

  • - The US Dollar is in an uptrend above the 109.50 support against the Japanese Yen.
  • - There is a key bullish trend line formed with support at 109.60 on the hourly chart of the USD/JPY pair.
  • - Recently in Japan, the Monetary Base report for May 2018 was released by the Bank of Japan.
  • - The outcome was above the market forecast of +7.6% as the Monetary Base rose 8.1%.

Japan’s Monetary Base

Recently in Japan, the Monetary Base report for May 2018 was released by the Bank of Japan. The market was positioned for a rise of around 7.6% in the base compared with the last reading of 7.8%.

The actual result was above the market forecast of +7.6% as the Monetary Base rose 8.1%, which was also higher compared with the last reading of 7.8%.

The USD/JPY pair is currently trading in a positive zone and any dips towards the 109.50 level remains supported in the near term.

USD/JPY Technical Analysis

The US Dollar started a major upside move from the 108.50 pivot level against the Japanese Yen. The USD/JPY pair climbed higher above the 109.00 and 109.20 resistance levels, and also settled above the 100 hourly simple moving average.

USD/JPY Technical Analysis US Dollar Japanese Yen

The pair traded close to the 109.80 level and a high was formed at 109.76. Later, a downside move and the pair corrected lower towards 106.00. There is a key bullish trend line formed with support at 109.60 on the hourly chart of the USD/JPY pair.

Moreover, the 23.6% Fib retracement level of the last wave from the 108.72 low to 109.76 high is positioned near the 109.51 level. Therefore if the pair breaks the trend line support, it could test 109.51.

The chances of a downside break below 109.50 are very low. Should there be a break below 109.50, the pair could test the 50% Fib retracement level of the last wave from the 108.72 low to 109.76 high at 109.24.

On the upside, the 109.75 level is a short term resistance. Above this, the USD/JPY pair could break the 110.00 level in the near term.


Originally published at ForexGator.com.