USD/JPY Forecast for the Week of January 2-6, 2017
USD/JPY dropped as low as the 116 line, but closed the week at 116.76. This week has four events.
Japanese consumer inflation and spending indicators continued to point downward last week. The yen was buoyed by the BoJ Summary, which was moderately optimistic about the Japanese economy. In the US, consumer confidence sparkled, as US consumers remains optimistic about economic conditions. On the labor front, unemployment claims dropped, beating expectations.
USD/JPY opened the week at 117.30 and climbed to a high of 117.81, testing resistance at 117. The pair then reversed directions and dropped to a low of 116.02. USD/JPY closed the week at 116.76.
USD/JPY Technical Overview
Prev. Close 117.94
Weekly trading Range 117.41 – 118.43
52 wk Range 99.08 – 121.7
1-Year Return – 2.95%
USD/JPY Support and Resistance Forecast
S 1: 115.61
S 2: 114.67
S 3: 113.16
R 1: 118.63
R 2: 119.57
R 3: 121.08
Weekly Economic Events Forecast for January 2-6, 2017 (GMT: +0.0)
Final Manufacturing PMI: Wednesday, 00:30. The index showed little change in November, posting a reading of 51.3, which was within expectations. The indicator is expected to rise to 51.9 in the December report.
Monetary Base: Wednesday, 23:30. Monetary Base has been steadily dropping since early 2016 and dropped to 21.5% in November, short of the forecast of 23.2%. The trend is expected to reverse in December, with an estimate of 22.3%.
10-year Bond Auction: Thursday, 3:45. The yield on 10-year bonds improved in December to 0.03%. This marked the first foray into positive territory since March. Will we see positive reading in the January auction?
Average Cash Earnings: Friday, 00:00. This indicator, which measures income levels, is correlated to consumer spending. In October, the indicator edged lower to 0.1%, short of the estimate of 0.2%. The estimate for November stands unchanged at 0.2%.