USDJPY Weekly Forex Forecast – 18th to 22nd Sept 2017
Technical Outlook: USDJPY posted strong gains over the week but price action stalled after testing the resistance level of 110.91 – 110.66. We expect some consolidation to take place at this level. The bias remains to the downside as USDJPY could be seen falling back to 108.43. However, in the event that the U.S. dollar manages to break the resistance level, we can expect further gains that could put USDJPY on track for testing 113.00. To the downside, short term support is seen at 109.40 which could be tested but USDJPY could remain range bound in the near term within the mentioned resistance and the minor support level.
Fundamental Outlook: A big week for the Japanese yen as the Bank of Japan meets for its monetary policy meeting. The BoJ’s meeting is due on Thursday. No changes are expected from the BoJ at this month’s meeting. Interest rates are expected to remain unchanged at -0.10%. Focus will be on the BoJ’s forward guidance as always. No further easing expansion is expected as the BoJ maintains its QE purchased. Inflation forecasts will be under the scanner but there is scope for the BoJ to potentially come out with hawkish forward guidance, in line with most other central banks.
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USDJPY Weekly Forex Forecast – 18th to 22nd Sept 2017
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