Our USDJPY forecast sees the pair edge higher in the past few hours and now stands in the buyer’s territory. It’s located at 110.36, above 110.28 weekly pivot point. Staying above the broken obstacles could really signal potential growth.
Nikkei’s rally forced the Yen to depreciate versus its rivals, while DXY’s rebound helped the greenback to increase. The Japanese Yen has depreciated even if the Japanese Yen has increased by 5.0% versus 4.8% expected, while the Core Machinery Orders has registered a 7.8% growth compared to 2.5% estimate.
Probably, the USD will appreciate as forex traders are expecting good US inflation data. The CPI and the Core CPI indicators will be released tomorrow and could bring sharp movements. You should be careful if you are not an experienced trader.
USDJPY forecast – technical analysis:
In our USDJPY forecast we note that the pair has found support on the first warning line (wl1) of the descending pitchfork and now is located above the lower median line (lml), the weekly pivot point (110.28), and beyond the uptrend line.
Its false breakdown with great separation through the 50% retracement level signalled that we may have a bounce back. Closing and staying above the current broken obstacles could be a forex signal of further growth to come.
Making only a false breakout above these levels could announce that the USD/JPY will develop a border corrective phase. A minor consolidation above the weekly pivot point could activate a potential growth towards the median line (ml).
The sentiment could change tomorrow after the US inflation figures. Dropping below 109.97 today’s low could indicate a bearish movement towards the 50% retracement level.
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