[FOREX FORECAST] USDJPY Weekly – 23rd to 27th Jan 2017

USDJPY Weekly Forex Forecast – 23rd to 27th Jan 2017

Technical Outlook: USDJPY retraced last week as noted but the depth of the retracement has been shallow. Price retraced to only near 115.35 rather than the expected 116.00 level. Still, the retracement came on a hidden bearish divergence back to the support level which was tested for resistance. The following declines will now likely to continue towards the previous low formed near 112.70. Failure to decline to 112.70 could mean a sharper correction. Therefore, if USDJPY pulls back above 115.35 then expect the gains to push the dollar towards 116.00 – 116.50 region. Alternately, to the downside, look for USDJPY to retest 112.70 with the potential to post new declines down to 111.275 marking the initial support level.


Fundamental Outlook: A busy week from Japan next week, economic data focuses on preliminary PMI numbers for the month of January. Later in the week, inflation figures will be coming out. The BoJ’s measure of core CPI is expected to continue to remain weak, rising only 0.1%, compared to the 0.2% increase seen the month before. The Tokyo core CPI and the national core CPI are both forecast to continue to decline. However, there could be an upside surprise considering that higher energy prices have sent inflation higher across some of the major economies.


Previous USDJPY Weekly Forex Forecast

TLDR: Bearish

from Advanced Forex Strategies