USD/JPY Forecast: Bulls retain control despite trading below 110.00
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERUSD/JPY Current price: 109.96
- Japan’s trade deficit was wider than anticipated in May, printing at ¥-187.1 billion.
- The US Federal Reserve will present fresh economic projections.
- USD/JPY is technically bullish, but traders wait for the Fed.
The greenback is under mild selling pressure this Wednesday, although trading remains choppy ahead of the US Federal Reserve’s announcement later today. The USD/JPY pair trades in the 109.90 price zone, helped by softer US government bond yields. Equities lack clear directional strength amid the cautious wait-and-see stance and the absence of other fundamental drivers.
Meanwhile, Japan Prime Minister Yoshihide Suga would decide on Thursday whether to lift emergency measures. Data wise, the country published the May Merchandise Trade Balance Total, which posted a wider than anticipated deficit of ¥-187.1 billion. Machinery Orders in April were up 0.6% MoM and 6.5% YoY, missing the market’s expectations.
The US will publish May Housing Starts and Building Permits, yet the focus will clearly be on the central bank’s statement. Policymakers are widely anticipated to leave rates and QE unchanged. Attention will be put on the statement’s wording and any hint of tapering. Also, the central bank will publish fresh Economic Projections, which may also impact price action.
USD/JPY short-term technical outlook
The USD/JPY pair retains its bullish stance, despite trading below the 110.00 mark. The 4-hour chart shows that the pair is finding buyers around a bullish 20 SMA, which keeps advancing above the longer ones. In the meantime, technical indicators pared their declines above their midlines and are currently picking up. The slide may continue in the near-term if the pair extends its decline below 109.80.
Support levels: 109.80 109.35 108.90
Resistance levels: 110.30 110.75 111.05
USD/JPY Current price: 109.96
- Japan’s trade deficit was wider than anticipated in May, printing at ¥-187.1 billion.
- The US Federal Reserve will present fresh economic projections.
- USD/JPY is technically bullish, but traders wait for the Fed.
The greenback is under mild selling pressure this Wednesday, although trading remains choppy ahead of the US Federal Reserve’s announcement later today. The USD/JPY pair trades in the 109.90 price zone, helped by softer US government bond yields. Equities lack clear directional strength amid the cautious wait-and-see stance and the absence of other fundamental drivers.
Meanwhile, Japan Prime Minister Yoshihide Suga would decide on Thursday whether to lift emergency measures. Data wise, the country published the May Merchandise Trade Balance Total, which posted a wider than anticipated deficit of ¥-187.1 billion. Machinery Orders in April were up 0.6% MoM and 6.5% YoY, missing the market’s expectations.
The US will publish May Housing Starts and Building Permits, yet the focus will clearly be on the central bank’s statement. Policymakers are widely anticipated to leave rates and QE unchanged. Attention will be put on the statement’s wording and any hint of tapering. Also, the central bank will publish fresh Economic Projections, which may also impact price action.
USD/JPY short-term technical outlook
The USD/JPY pair retains its bullish stance, despite trading below the 110.00 mark. The 4-hour chart shows that the pair is finding buyers around a bullish 20 SMA, which keeps advancing above the longer ones. In the meantime, technical indicators pared their declines above their midlines and are currently picking up. The slide may continue in the near-term if the pair extends its decline below 109.80.
Support levels: 109.80 109.35 108.90
Resistance levels: 110.30 110.75 111.05
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.