USD/JPY Forecast — US Dollar Remains in Uptrend above 110.00 Vs Japanese Yen

  • - The US Dollar placed nicely in a bullish zone above the 110.00 level against the Japanese Yen.
  • - There is a major bullish trend line forming with support at 110.20 on the hourly chart of the USD/JPY pair.
  • - Recently in Japan, the Gross Domestic Product for Q1 2018 was released by the Cabinet Office.
  • - The outcome was below the market forecast of 0% (QoQ) (Prelim) as there was a decline in the GDP by 0.2%.

Japan’s Gross Domestic Product

Recently in Japan, the Gross Domestic Product for Q1 2018 was released by the Cabinet Office. The market was positioned for no change in the GDP in Q1 2018 compared with the previous quarter.

The result was below the market forecast of 0% (QoQ) (Prelim) as there was a decline in the GDP by 0.2%. In terms of the yearly change, Japan’s GDP declined by 0.6% (Prelim), which was below the forecast of 0%.

The USD/JPY pair is trading with a positive bias above the 110.00 level and it may continue to move higher in the near term.

USD/JPY Technical Analysis

The US Dollar formed a support base near the 109.30 level against the Japanese Yen. The USD/JPY pair started an upside move and traded above the 109.50 and 110.00 resistance levels. It even settled above 110.00 and the 100 hourly simple moving average.

USD/JPY Technical Analysis US Dollar Japanese Yen

The pair traded as high as 110.45 before it faced sellers. It started a downside correction and declined below the 23.6% Fib retracement level of the last wave from the 109.81 low to 110.45 high. However, there are many supports on the downside above 110.00.

There is also a major bullish trend line forming with support at 110.20 on the hourly chart of the USD/JPY pair. Moreover, the 38.2% Fib retracement level of the last wave from the 109.81 low to 110.45 high is currently acting as a support near 110.20.

Therefore, as long as the pair is above 110.00, it remains in an uptrend. On the upside, an initial resistance is at 110.45, followed by the 110.80 level. On the downside, supports are at 110.20, 110.00 and 109.80.


Originally published at ForexGator.com.

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