USD/JPY Forecast: Bulls poised to push the pair towards 106.26
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UNLOCK OFFERUSD/JPY Current price: 105.70
- Mixed Japanese data indicated that the pandemic keeps taking its toll on the local economy.
- US ADP survey on private jobs’ creation seen reporting 650K new positions were added in September.
- USD/JPY is technically bullish, needs to break above the 105.80 resistance level.
The USD/JPY pair has continued to advance in slow-motion at the beginning of the day, reaching a fresh weekly high of 105.80. The dollar managed to recover some ground after the first US presidential debate. It didn’t lack entertainment for watchers, but was clearly mirroring what’s going on in the US: a political chaos ruled by anger. As per its effects on the financial markets, US President Trump refused to say that he would accept the election results is weighing on the market mood. Equities trade in the red in Europe, dragging US futures. The USD/JPY pair trades in the 105.70 price zone.
Japan published August Retail Trade, which beat expectations, by falling by just 1.9% YoY. The preliminary estimate for Industrial Production indicated a modest monthly improvement, although the year-on-year reading resulted at -13.3%, worse than the -10% expected. The country also published August Housing Starts, which were down 9.1%, while Constructions Orders were up by 28.5%.
The US will publish today the final version of Q2 GDP, foreseen unchanged at -31.7%. It will also release the ADP survey on private jobs’ creation, foreseen at 650K in September from 428K in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair is bullish according to intraday technical readings, still lacking follow-through. The 4-hour chart shows that technical indicators advance within positive levels, although the RSI remains below its previous weekly high. The pair, in the meantime, remains trapped between moving averages, with the sellers around the 200 SMA. Anyway, the risk is skewed to the upside, with further gains expected on a break above the mentioned daily high.
Support levels: 105.40 105.00 104.60
Resistance levels: 105.80 106.25 106.60
View Live Chart for the USD/JPY
USD/JPY Current price: 105.70
- Mixed Japanese data indicated that the pandemic keeps taking its toll on the local economy.
- US ADP survey on private jobs’ creation seen reporting 650K new positions were added in September.
- USD/JPY is technically bullish, needs to break above the 105.80 resistance level.
The USD/JPY pair has continued to advance in slow-motion at the beginning of the day, reaching a fresh weekly high of 105.80. The dollar managed to recover some ground after the first US presidential debate. It didn’t lack entertainment for watchers, but was clearly mirroring what’s going on in the US: a political chaos ruled by anger. As per its effects on the financial markets, US President Trump refused to say that he would accept the election results is weighing on the market mood. Equities trade in the red in Europe, dragging US futures. The USD/JPY pair trades in the 105.70 price zone.
Japan published August Retail Trade, which beat expectations, by falling by just 1.9% YoY. The preliminary estimate for Industrial Production indicated a modest monthly improvement, although the year-on-year reading resulted at -13.3%, worse than the -10% expected. The country also published August Housing Starts, which were down 9.1%, while Constructions Orders were up by 28.5%.
The US will publish today the final version of Q2 GDP, foreseen unchanged at -31.7%. It will also release the ADP survey on private jobs’ creation, foreseen at 650K in September from 428K in the previous month.
USD/JPY short-term technical outlook
The USD/JPY pair is bullish according to intraday technical readings, still lacking follow-through. The 4-hour chart shows that technical indicators advance within positive levels, although the RSI remains below its previous weekly high. The pair, in the meantime, remains trapped between moving averages, with the sellers around the 200 SMA. Anyway, the risk is skewed to the upside, with further gains expected on a break above the mentioned daily high.
Support levels: 105.40 105.00 104.60
Resistance levels: 105.80 106.25 106.60
View Live Chart for the USD/JPY
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