Weekly Forecast

Ease your trading with our fundamental predictions and technical analysis

USD/JPY Weekly Forecast (31st August 2020 – 4th September 2020)

Aug 29, 2020 05:30

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Fundamental view:

The US dollar has initially tried to rally against the Japanese yen, but gave back quite a bit of the gains, especially on Friday. Japan BOJ Core CPI on25th August and US Core Durable Goods Orders on 26th August supported upward movements for the pair whereas Japan SPPI yearly report on 26th August and US Unemployment Claims on 27th August favored downtrend for the pair.

The dollar is going to struggle to find its footing, mainly because the Federal Reserve has come out and said that it is going to raise the bar for raising interest rates.

The major economic events deciding the movement of the pair in the next week are Japan Unemployment Rate at Aug 31, Japan Final Manufacturing PMI, US ISM Manufacturing PMI at Sep 01, US ADP Non-Farm Employment Change at Sep 02, US ISM Non-Manufacturing PMI, at Sep 03, US Unemployment Rate at Sep 04.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.27% higher than the previous week. Maintaining high at 106.94 and low at 105.20 showed a movement of 175 pips.

In the upcoming week we expect USD/JPY to show a bearish trend. The currency pair is trading below the 200 Simple Moving Average and the MACD trades to the downside. A solid breakout below 104.71 may open a clean path towards 104.08 and may take a way down to 102.96. Should 106.46 prove to be unreliable resistance, the USDJPY may raise upwards 107.57 and 108.20 respectively. In H4 chart, Formation of Ascending broadening wedge pattern breakout indicates reversal of the trend creating prospects of a bearish trend Along with a three black crows formation braces our expectation.

Preference
Sell:  105.54 target at 104.12 and stop loss at 106.52

 

Alternate Scenario
Buy: 106.52 target at 108.15 and stop loss at 105.54
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