USD/JPY Forecast April 20-24 – Yen Remains Steady, Manufacturing PMIs Next

The Japanese yen posted slight gains last week,  pushing Dollar/yen below the 108 line. The upcoming week’s highlights include Manufacturing PMIs in the U.S. and Japan. As well, Japan will release Core CPI while the U.S. publishes durable goods orders.

USD/JPY fundamental mover

Japanese industrial numbers headed lower in February. Industrial Production declined by 0.3%, after a gain of 1.0% in January. As well, Tertiary Industry Activity contracted by 0.5%, after a gain of 0.8% in the previous release.

In the U.S., consumer spending plunged in March. Retail sales declined by a staggering 8.7%, worse than the estimate of -8.0 percent. The core reading fell by 4.5%, beating the forecast of 4.9 percent. The employment market remains in disarray, as employment claims topped the 5-million mark. On the manufacturing front, the Philly Manufacturing Index plunged to -56.6, compared to -12.7 a month earlier. This was weaker than the estimate of -30.0 points.

See all the main events in the Forex Weekly Outlook

Key news updates for USD/JPY


USD/JPY Technical Analysis

We start with resistance at 110.62.

109.73 is protecting the 110 level, which has psychological significance.

108.70 (mentioned last week) is next.

108.10 has switched to a resistance role after USD/JPY posted losses last week.

107.30 is an immediate support level. It could see action early next week.

106.61 has held in support since mid-March. 105.55 follows.

104.65 is the final support line for now.


USD/JPY Daily Chart

USD/JPY Sentiment

I remain bullish on USD/JPY

The U.S. dollar has emerged as the primary safe-haven asset in the current crisis, outshining the yen. The greenback has held its own against the yen in March and April, despite dismal economic data in the U.S.

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About Author

Kenny Fisher - Senior Writer A native of Toronto, Canada, Kenneth worked for seven years in the marketing and trading departments at Bendix, a foreign exchange company in Toronto. Kenneth is also a lawyer, and has extensive experience as an editor and writer.

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