USDJPY Forecast | Daily Technical Analysis for December 27, 2016
USDJPY Technical Overview
Prev. Close 117.09
Day’s Range 117.06 – 117.46
52 wk Range 99.08 – 121.70
1-Year Return – 2.48%
USDJPY Technical Support and Resistance Forecast
The USD/JPY closed at 117.287, down 0.242 or -0.21%.
usdjpy forecast: usdjpy pair possibly will find the immediate support at 116.99. If, market breaks the first support then it will go for the following support to test. Following supports are 116.88 and 116.72.
On the other side the market has immediate resistance at 117.31. If, market breaks the primary resistance level then, market will go for the new resistance level 117.42 and 117.58.
Possible trading range for today 117.06 – 117.46.
USDJPY Fundamental Analysis Forecast
The Dollar/Yen closed lower on Friday in a lackluster trade. The market posted an inside move for the third straight day with the December 20 range the reference point. This typically indicates investor indecision and impending volatility.
This type of pattern comes as no surprise during the holiday season. Therefore, investors should wait for the next breakout move which is likely to occur when the Forex market starts to return to full strength after January 1.
On Monday, while the Forex markets were closed, Bank of Japan policymakers released the minutes of their November 1 rate review. The minutes showed members disagreed on how much emphasis the central bank should place on the size of its bond purchases under a new framework targeting interest rates. The minutes essentially highlighted the challenges of navigating the central bank’s complex policy scheme.
Early Tuesday, Japan released a slew of economic data that had almost no impact on the trade. Household Spending came in at -1.5%, below the 0.2% estimate, but better than the previous -0.4% read.
Tokyo Core CPI came in at -0.6%, missing the -0.4% forecast. National Core CPI was -0.4%, matching last month’s read, but coming in worse than the -0.3% estimate. Japan’s Unemployment Rate was 3.1%, higher than the 3.0% forecast.
Later in the session, the BOJ Core CPI will be released. It is forecast at 0.2%, lower than the previous 0.3%.
Japanese Housing Starts are expected to come in at 9.6%, below the previous 13.7%.
In the U.S., traders will get the opportunity to react to the latest S&P/CS Composite-20 HPI and the Richmond Manufacturing Index.
The major report is the Conference Board’s Consumer Confidence report. It is expected to come in higher at 108.9.