USDJPY Weekly Forex Forecast – 3rd to 7th Sept 2018
Fundamentals Outlook
The markets open to a busy trading week. With the first week of the month, the economic calendar is dominated by monthly economic reports. A particularly busy week for the U.S. dollar will see the release of the ISM’s manufacturing and non-manufacturing PMI’s. Later in the week, the ADP private payrolls report will be coming out followed by the monthly employment statistics for August. Elsewhere in the Eurozone, the week will focus on the release of the manufacturing and services PMI figures for the month. This is later followed by industrial production and trade balance figures for France and Germany. The final revised GDP will also be coming out later this week. The economic calendar is quiet for Japan and Switzerland.
Chart set up: The USDJPY currency fell to the support level of 110.75 last week. The decline to this level coincided with a rebound indicating that the support level held strongly. While the direction in USDJPY remains flat for the near term, we expect the consolidation to play out within the range.
Key support/resistance levels:
Support: 11.57; Resistance: 111.55
Commentary:
The resistance level at 111.55 and support at 110.75 could be seen keeping the currency pair trading flat. For the short term, the 4-hour Stochastic oscillator indicates a hidden bullish divergence. With this divergence coinciding with the rebound of the support level, the currency pair could see some near term bound. With the week ahead expected to busy with the economic data for August, the market sentiment is most likely to dictate the outcome for the USDJPY. For the week ahead, the USDJPY currency pair is expected to be bullish.
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