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Dollar/yen continues to be marked by strong volatility. The pair rose 1.17%, erasing almost all of the losses from the previous week. Japan will release GDP for the third quarter. The forecast is for a gain of 4.4%, after a sharp decline in Q2 of -7.8%.
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Japan’s economic data was limited to tier-2 releases. Economy Watchers Sentiment, a consumer spending indicator, pushed will into expansion territory, climbing from 49.3 to 54.5. The neutral 50-level separates contraction from expansion.
In the US, consumer inflation softened, as the headline and core readings both fell to 0.0%, down from 0.2% beforehand. There was positive news on the employment front, as unemployment claims fell to 709 thousand, down from 751 thousand in the previous release. The week wrapped up with UoM Consumer Sentiment, which fell from 81.2 to 77.0, its lowest level in three months.
Updates:
107.92 is an important monthly resistance line.
106.66 has held in resistance since the end of August.
105.52 (mentioned last week) is next.
104.11 is a weak resistance line.
103.52 is next.
102.13 has provided support since March.
101.51 is the final support line for now.
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USD/JPY Sentiment
I am neutral on USD/JPY
The Japanese yen posted strong gains last week, but it was more of a case of the dollar’s weakness rather than strength from the dollar. The Japanese economy is limping along, and strong numbers from the US could push the dollar higher.
Further reading:
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