USD/JPY Forecast: Slowly grinding higher on dollar’s momentum
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Subscribe to PremiumUSD/JPY Current price: 105.60
- The positive tone of Wall Street provided additional support to the pair at the end of the week.
- Japan will publish this Monday, September Tokyo inflation data.
- USD/JPY is advancing, but additional gains are still unclear.
The USD/JPY pair closed the week with substantial gains around 105.60, amid continued dollar’s demand. By the end of the week, Wall Street’s rally provided additional support to the pair. US Treasury yields, on the other hand, ticked lower after softer-than-expected US data, keeping the upside at check.
In the data front, Japan published the August Corporate Service Price Index, which came in at 1% YoY, below the 1.4% expected. At the beginning of the week, the country will publish the final versions of the July Leading Economic Index, and the Coincident Index for the same month. It will also release September Tokyo inflation, seen at 0.4% YoY. The core reading, which excludes fresh food prices is foreseen at 0.3%.
USD/JPY short-term technical outlook
The USD/JPY pair has settled above the 61.8% retracement of its latest daily slump at 105.40, although the bullish potential remains limited, according to the daily chart. In the mentioned time-frame, the pair remains below a flat 20 DMA, while the larger ones are well above this last. Technical indicators, in the meantime, recovered from oversold levels but were unable to enter positive levels. In the 4-hour chart, the pair settled a few pips above its 100 SMA while the 20 SMA continues to advance below the current level. Technical indicators lost their bullish strength, but remain within positive levels.
Support levels: 105.40 105.00 104.55
Resistance levels: 105.80 106.25 106.60
View Live Chart for the USD/JPY
USD/JPY Current price: 105.60
- The positive tone of Wall Street provided additional support to the pair at the end of the week.
- Japan will publish this Monday, September Tokyo inflation data.
- USD/JPY is advancing, but additional gains are still unclear.
The USD/JPY pair closed the week with substantial gains around 105.60, amid continued dollar’s demand. By the end of the week, Wall Street’s rally provided additional support to the pair. US Treasury yields, on the other hand, ticked lower after softer-than-expected US data, keeping the upside at check.
In the data front, Japan published the August Corporate Service Price Index, which came in at 1% YoY, below the 1.4% expected. At the beginning of the week, the country will publish the final versions of the July Leading Economic Index, and the Coincident Index for the same month. It will also release September Tokyo inflation, seen at 0.4% YoY. The core reading, which excludes fresh food prices is foreseen at 0.3%.
USD/JPY short-term technical outlook
The USD/JPY pair has settled above the 61.8% retracement of its latest daily slump at 105.40, although the bullish potential remains limited, according to the daily chart. In the mentioned time-frame, the pair remains below a flat 20 DMA, while the larger ones are well above this last. Technical indicators, in the meantime, recovered from oversold levels but were unable to enter positive levels. In the 4-hour chart, the pair settled a few pips above its 100 SMA while the 20 SMA continues to advance below the current level. Technical indicators lost their bullish strength, but remain within positive levels.
Support levels: 105.40 105.00 104.55
Resistance levels: 105.80 106.25 106.60
View Live Chart for the USD/JPY
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