USD JPY Forecast for the Week 28th November, 2016
The investors continued to increase bets for the higher USA interest rate as USA Dollar suddenly increased against Japanese yen last week. This week from the USD JPY forecast we see USD JPY market is in bearish mood.
Additionally, the rising stock market also pressured the Yen because it is a funding currency. With rates negative in Japan, U.S. stock traders are borrowing from Japanese banks, selling the Yen then investors the dollars in the equity markets.
The USD JPY finished the week at 113.179, up 2.271 or +2.05%.
Last week, the dollar was support by a sharp jump in U.S. Durable Goods Orders, steady Weekly Unemployment Claims and firm Consumer Sentiment. The Fed meeting minutes indicated that policymakers believe the economy was strengthening enough to warrant a rate hike before the end of the year.
The US dollar continued to roll, as US numbers impressed. In the US, durable goods orders were sharp and UoM Consumer Sentiment beat expectations. In Japan, Tokyo Core CPI posted another decline, as the Japanese economy continues to grapple with deflation.
There are 8 important upcoming economic events this week.
1. Household Spending
2. Retail Sales
3. Preliminary Industrial Production
4. Housing Starts
5. Capital Spending
6. Final Manufacturing PMI
7. 10-year Bond Auction
8. Monetary Base
USD JPY Forecast: Technical Overview
Previous week close: 113.22
Current Week Open: 112.90
Today’s Market Range: 111.36 – 112.97
52 wk Range: 99.08 – 123.67
1-Year Return – 8.56%
Support and Resistance Forecast:
S 1: 112.74
S 2: 112.41
S 3: 112.07
R 1: 113.42
R 2: 113.75
R 3: 114.09