Weekly Forecast

Ease your trading with our fundamental predictions and technical analysis

USD/JPY Weekly Forecast (17th August 2020 – 21st August 2020)

Aug 15, 2020 05:30

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Fundamental view:

Positive economic data out of the United States appears to have been the primary driver behind the USD/JPY exchange rate’s recent recovery from the July low, as investors mull the lack of progress in fiscal stimulus talks between Republicans and Democrats. Current Account on 11th August, Japan PPI yearly report on 13th August created a bearish atmosphere for the pair whereas US JOLTS Job Openings on 10th Aug, CPI monthly report on 12th August created a bullish atmosphere.

The better than expected report of US in the past week created a bullish environment for the pair.

The major economic events deciding the movement of the pair in the next week are Japan Revised Industrial Production monthly report at Aug 17, US Crude Oil Inventories, FOMC Meeting Minutes, OPEC-JMMC Meetings at Aug 19, Japan National Core CPI yearly report and Unemployment Claims at Aug 20.

USD/JPY Weekly outlook:

Technical View:

Last week’s high was 0.54% higher than the previous week. Maintaining high at 107.05 and low at 105.70 showed a movement of 134 pips.

In the upcoming week we expect USD/JPY to show a bullish trend. The currency pair is trading above the 200 Simple Moving Average and the MACD trades to the upside. A solid breakout above 107.17 may open a clean path towards 107.78 and may take a way up to 108.51. Should 105.83 prove to be unreliable support, the USDJPY may sink downwards 105.10 and 104.49 respectively. In H4 chart, Formation of bullish butterfly pattern indicates reversal of the trend creating prospects of a bullish trend Along with a bullish spinning top formation braces our expectation.

Preference
Buy: 106.35 target at 107.27 and stop loss at 105.55

 

Alternate Scenario
Sell:  105.55 target at 104.49 and stop loss at 106.35
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