[FOREX TIP] USDJPY Weekly Forex Forecast – 5th to 9th Feb 2018

USDJPY Weekly Forex Forecast – 5th to 9th Feb 2018

Technical Outlook: The USDJPY posted a bottom with prices briefly consolidating at the 108.43 level of support. The reversal off this level saw the USDJPY recovering the previous declines. Resistance is seen at 110.91 – 110.66 level which could be tested in the near term. A decline off this resistance level could signal a pull back. Watch for a potential cup and handle pattern that could be formed at this level. In the event that this pattern unfolds, we can expect USDJPY to extend the gains towards 112.50 on a successful breakout above 110.91 – 110.66 level of resistance. The pull back could be seen stalling near 109.60 – 109.40 level.

Fundamental Outlook: Data from Japan this week will start with the average cash earnings data. Previously, the average cash earnings increased 0.9% beating the forecasts and rising from 0.2% from the prior month. A continued increase in the average cash earnings could potentially indicate higher consumer prices in the coming months. This data could be important as it will set the stage for higher inflation which in turn could influence the BoJ’s monetary policy. Other data points from Japan over the week include the economy watchers sentiment and the leading indicators data.

 

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USDJPY Weekly Forex Forecast – 5th to 9th Feb 2018

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