USD/JPY Forecast: Bulls insists despite uncertainty
|USD/JPY Current Price: 109.45
- Tokyo inflation beat the market’s expectations, remained well below BOJ’s target.
- The Japanese manufacturing PMI seen in contraction territory during November.
- USD/JPY technically bullish, heading toward 110.00 a psychological resistance.
The USD/JPY pair has closed Friday at 109.45, its highest weekly settlement in six months. It hit 109.66 before retreating as the greenback suffered a knee-jerk amid month-end fixing, but overall retains the bullish strength. Japanese data released on Friday was mixed, as Tokyo November inflation beat the market’s expectations, up by 0.8% YoY. The core reading ex-fresh food met the market’s expectations, printing at 0.6%. The preliminary estimate of October Industrial Production, however, plummeted by 4.2% in the month and by 7.4% when compared to a year earlier. Finally, November Consumer Confidence bounced, up to 38.7.
In a thinned US session, the pair traded uneventfully, weighed by the sour tone of equities yet underpinned by rising US Treasury yields, as the yield on the benchmark 10-year Treasury note rose to 1.79% to close the week at 1.77%. This Monday, Japan will release the November Jibun Bank Manufacturing PMI, seen steady at 48.6.
USD/JPY short-term technical outlook
The USD/JPY pair is offering a neutral-to-bullish stance in its daily chart, as it continues developing above all of its moving averages, and with the 20 DMA about to cross above the 200 DMA. Technical indicators, in the meantime, consolidate within positive levels. In the shorter term, and according to the 4-hour chart, the pair met intraday buyers around a strongly bullish 20 SMA, while technical indicators corrected overbought conditions to settle within positive levels, keeping the risk skewed to the upside.
Support levels: 109.30 109.05 108.80
Resistance levels: 109.60 109.90 110.10
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.