USD JPY Pair Outlook

Economic News


Most of the equity market starting from Asian to US equities record gain in the last trading of the year. President Trump’s trade talks with China push dollar gains limited and lack of demand for Dollar on New Year holiday.

Lack of trading participation and drop in 10 yrs bond yield push dollar index lower, results rise safe haven demand assets like Gold and JPY currency higher. Treasury bond yield fell more than 1%.

Dollar index which trade near 5 week low of 96.13 vs. 96.30 on daily basis.

In upcoming days high economic data will be released by US like unemployment rate, ISM Manufacturing PMI, NFP, Fed chair statement which have high impact on future moves of US dollar and patch of its trajectory.

While no any economic data will released by Japan till 4th January

Market concerns remains over lowing global growth, while a partial US government shutdown and any aggressive USD bullish bets.

 

Pair Outlook


Pair trade with negative bias following Christmas decline. Broke major support of 110.00 and trade near support of 109.70 low made in month of August.

Below 109.7 support comes at 109.00 -108.70. As pair is now in oversold zone some respite in price possible either early by testing strong support of 109.00 or again regain above 110.00.

Consecutive close above 110.00 marks can raise price to 110.30-110.50

 

Technical Strategy


On daily charts pair recently trading below 200 days exponential moving averages and trending in bearish trend.

JPY continue to gather strength after breaking level of 110.00.Price can move lower to test 109 and even lower 108.7

 

USD/JPY Pair Outlook


An exponential Moving average like 50 days and 200 days also turns downward suggesting bearish trend still in play.

200 days major moving average now acts as resistance and strong price action on upside only possible above this.

MACD momentum indicator crosses below signal line and histogram turns negative and below zero line not reach to oversold zone yet. Price can move downside in time span.

Some sort of bounce in price visible ahead release of economic data in coming days and price can be volatile.

Major support and resistance levels as below:

 

Symbol S3 S2 S1 Pivot R1 R2 R3
USDJPY 108.3 109.15 109.72 110.57 111.14 111.99 112.56

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