USD/JPY Forecast: Bearish trend remains in place
|USD/JPY Current Price: 106.66
- A better market mood failed to lift the pair this week.
- BOJ’s Summary of Opinions report to provide fresh inflation and growth forecasts.
- USD/JPY bounced from 105.98 but the risk remains skewed to the downside.
The USD/JPY pair settled in the 106.60 region last Friday, down for a second consecutive week. The pair traded as low as 105.98, its lowest in almost two months mid-week, slowly grinding higher afterwards, helped by an improving market’s mood. By the end of the week, Japan released Labor Cash Earnings for March, which increased by 0.1% when compared to a year earlier, missing the market’s expectations. Overall Household Spending in the same period decreased by 6.0%. Also, the Jibun Bank Services PMI plunged to 21.5 in April after printing 33.8 in March. Early Monday, the Bank of Japan will publish the Summary of Opinions report, which includes inflation’s and growth’s projections.
USD/JPY short-term technical outlook
The daily chart for the USD/JPY pair shows that the upside has been limited by a daily descendant trend-line coming from April’s high at 109.37, now providing resistance at around 106.90. In the mentioned time-frame, the 20 DMA heads firmly south just above the mentioned trend-line, while technical indicators remain within negative levels, directionless. In the 4-hour chart, the pair has managed to settle above a mild-bearish 20 SMA but holds below the larger ones, as technical indicators consolidate just above their mid-lines.
Support levels: 106.30 106.00 105.65
Resistance levels: 106.90 107.30 107.70
View Live Chart for the USD/JPY
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.