Note: The USD/JPY forecast is updated during every weekend by taking into account the various factors which are expected to affect the relative price action of relative price action of the U.S. dollar and Japanese yen.
USD/JPY Weekly Outlook And Predictions
USD/JPY had gone down to 101.39 but jumped up strongly to 102.74 before another fall, which found support well over 101.39, at 101.66. The subsequent recovery broke over 102.39 to touch 102.82 before closing for the week at 102.47.
Two factors which go in favor of expecting further gains are as follows:
- The recent support well ahead the support zone of 100.39 to 100.64 as indicated in a post titled "What USD/JPY is waiting for to decide the near-term direction?"
- The fact that the pair tried to break the 55-day EMA resistance. Since January 24, there were 5 failed attempts to break that resistance.
However, we still be cautious till a break over 102.93 of January 30, 2014 does not take place. A break of that expected resistance should make USD/JPY to target the next resistance zone of 103.36 to 103.57. A decisive break of this resistance should result in testing the resistance zone of 103.97 to 104.20 first before attempting a test of 105.00 level.
However if the resistance at 102.93 holds and the price-action breaks below the recent 101.39 then it will indicate topping. Such a move will turn the focus towards 100.39 to 100.64 support zone once again.
Overall we expect some extended volatile moves between 100.00 and 105.00. A decisive break on either side is required to set the direction for the near-term. This supports and resistance zone may extend approximately 20 to 40 pips on either side of 100.00 and 105.00.
Please check the relative strengths of recent economic releases from the U.S. and Japan:
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This update on USD/JPY outlook is written by the analysts of ForexAbode.com. Do contact us for any questions, suggestions or feedback.