USD/JPY Forecast December 9-13 – Yen Swings Continue

Dollar/yen declined close to 1.0% last week, erasing the gains made a week earlier. The upcoming week could be busy for the pair, with the release of Japanese GDP, U.S inflation and the Federal Reserve statement.

USD/JPY fundamental movers

The Japanese consumer is showing signs of concern, given the uncertain economic picture. Household spending plunged 5.1% in September, its first decline in 2019.

In the U.S., last week’s highlights were key employment reports. Nonfarm payrolls soared to 266 thousand, up from 128 thousand a month earlier. Wage growth remained steady at 0.2%, just shy of the forecast of 0.3%. As well, the unemployment rate dropped from 3.6% to 3.5%. This beat the forecast of 3.6%. On the consumer front, UoM Consumer Sentiment climbed to 99.2, up sharply from 95.7 a month earlier.

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 112.25.

111.62 was last active in April. 110.62 is next.

109.73 has some breathing room after this week’s losses by USD/JPY. 109.35 is close by.

108.70 is an immediate resistance line. 108.10 is next.

107.30 (mentioned last week) switched to support in early October.

106.61 is next.

105.55 has held in support since late August. It is the final support level for now.

USD/JPY Daily Chart

USD/JPY Sentiment

I remain neutral on USD/JPY

The U.S. and China have yet to reach an agreement on the trade front, which is keeping risk appetite in check. Any signs of progress in the talks could weigh on the safe-haven yen. The Japanese economy remains weak and the yen is not all that attractive for investors.

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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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