USD/JPY Forecast — US Dollar Gaining Momentum Vs Japanese Yen
- - The US Dollar is placed in a bullish trend above the 110.80 support area against the Japanese Yen.
- - There is a key bullish trend line formed with support at 110.85 on the hourly chart of the USD/JPY pair.
- - Recently in Japan, the Machinery New Orders figure for May 2018 was released by the Cabinet Office.
- - The outcome was above the market forecast of +8.6% as there was a rise in orders by 16.5% (YoY).
Japan’s Machinery New Orders
Recently in Japan, the Machinery New Orders figure for May 2018 was released by the Cabinet Office. The market was positioned for a rise of around 8.6% in orders in May 2018 compared with the last same month a year ago.
The actual result was above the market forecast of +8.6% as there was a rise in orders by 16.5%. Looking at the monthly change, there was a decline of 3.7% in orders, which was less than the forecast of -5.5%. However, it was well below the last reading of +10.1%.
The USD/JPY pair is moving higher and it seems like the pair may perhaps continue to move higher above the 111.20 level in the near term.
USD/JPY Technical Analysis
The US Dollar started a nice upside move from the 110.40 swing low against the Japanese Yen. The USD/JPY pair jumped above the 110.80 and 111.00 resistance levels to move into a bullish zone above the 100 hourly simple moving average.
The pair traded as high as 111.35 before starting a downside correction. It declined and tested the 110.80 support area where buyers appeared. It again started moving higher and broke the 50% Fib retracement level of the last decline from the 111.35 high to 110.76 low.
The pair is placed nicely in a bullish zone and it seems like it could move above the 111.20 level soon to retest the 111.35 high. Above this, the pair will most likely test 111.50. An initial resistance sits around the 76.4% Fib retracement level of the last decline from the 111.35 high to 110.76 low at 111.21.
On the downside, the pair remains supported near the 111.00 level and a key bullish trend line with support at 110.85 on the hourly chart.
Originally published at ForexGator.com.