USDJPY Weekly Forex Forecast – 6th to 10th Feb 2017
Technical Outlook: USDJPY turned bearish last week falling to 112.60 by Friday’s close. The declines come on a hidden bearish divergence seen on the weekly chart, just below the 119.00 handle. However, the current levels near 112.00 – 112.50 is a level of support that could hold out. The upside bounce will be limited however with the price level at 114.00 likely to act as resistance. Thus, this level is ideal to take short positions in USDJPY, targeting 112.50 – 112.00. A break down below 112.00 – 112.50 could signal further declines towards 107.00. Alternately, if USDJPY continues to the upside, a break above 114.00 could see price rally towards the open gap near 115.10.
Fundamental Outlook: After the Bank of Japan left interest rates and its asset purchases unchanged last week, focus turns to Monday’s cash earnings. The data is expected to show an increase of 0.4% on the monthly basis. Lack of wage pressures has been a major concern as the BoJ struggles to stoke inflation. A weaker print could mean that inflation is unlikely to push higher any time soon. The remainder of the week will see other details from Japan including machinery orders and the economy watchers sentiment which is expected to rise to 51.9, extending the gains from 51.4 previously.
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USDJPY Weekly Forex Forecast – 6th to 10th Feb 2017 – Bearish
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