USD/JPY Forecast: Bullish amid dollar’s demand
|USD/JPY Current Price: 111.33
- US Treasury yields fell further amid Fed’s massive and unlimited QE.
- Japan’s March preliminary Jibun Bank Manufacturing PMI foreseen at 47.6.
- USD/JPY heading towards February high at 112.22 and higher.
The USD/JPY pair is once again ending the day with gains, not far from a fresh monthly high of 111.59. The Japanese currency appreciated at the beginning of the day as expected, as market players reacted to risk-averse weekend news. However, speculative interest returned to the greenback, moreover after the US Federal Reserve announced unlimited QE to counter the ongoing crisis. The pair surged, despite US equities remained in the red and US Treasury yields edged lower.
Japan will release the March preliminary Jibun Bank Manufacturing PMI foreseen at 47.6 from 47.8 previously. It may be a barometer of what PMI for other economies may result later in the day. Japan will also release the January Leading Economic Index and the Coincident Index for the same month, although given that those are all news, the market will likely ignore them.
USD/JPY short-term technical outlook
The USD/JPY pair is defying its recent highs amid the dollar’s strength, bullish short-term. The 4-hour chart shows that a bullish 20 SMA continues to provide intraday support, as it heads north below the larger ones. Technical indicators, in the meantime, however within positive levels, lacking clear directional strength. The pair has room to re-test February’s high at 112.22, and even advance beyond it as long as pullbacks are contained by buyers in the 109 handle.
Support levels: 111.05 110.70 110.20
Resistance levels: 111.90 112.25 112.60
View Live Chart for the USD/JPY
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