USDJPY Forecast for the Week of January 30, 2017
The USDJPY had a volatile week in terms of changes in direction. As far as the price action is concerned, there wasn’t much movement, with the Forex pair basically mirroring the previous week’s range. Nonetheless, after the events of the week were sorted, the market still managed to post a gain for the week.
The USD/JPY closed the week at 115.047, up 0.514 or +0.45%.
This week begins with the Bank of Japan Monetary Policy Statement, BOJ Outlook Report and the release of the BOJ Policy Rate. The BOJ is expected to leave policy unchanged as well as interest rates at -0.10%. It is also likely to say that it expects the economy to continue to improve.
The Fed is also expected to leave its benchmark interest rate unchanged, but may reveal its plans for the timing of future rate hikes. Traders are hoping the Fed gives its opinion on the executive decisions by President Trump during his first week in office and there possible impact on future Fed decisions.
Finally, the week ends with the release of the U.S. Non-Farm Payrolls report. It is expected to show the economy added 170K jobs in January while the unemployment rate remained unchanged at 4.7%. Average Hourly Earnings are expected to come in up 0.3%.
USDJPY Technical Overview
Prev. Close 115.09
Weekly trading Range 114.4 – 115.38
52 wk Range 99.08 – 121.48
1-Year Return – 4.93%
USDJPY Support and Resistance Forecast
S 1: 113.09
S 2: 112.36
S 3: 111.18
R 1: 115.45
R 2: 116.18
R 3: 117.36