Dollar/yen dropped sharply last week, as the US election drama resulted in broad losses for the US dollar. The pair fell to a weekly low of 103.17, its lowest level since early February. There are no major releases out of Japan in the upcoming week. In the US, the focus will be on inflation, with the release of consumer inflation and the Producer Price Index. .
Key news updates for USD/JPY
USD/JPY Technical Analysis
With USD/JPY posting strong losses, we start at lower levels:
106.66 has held in resistance since the end of August.
105.52 is next.
104.11 has switched to resistance after sharp losses by USD/JPY.
103.52 is a weak resistance line.
102.13 is the first line of support.
101.51 is next.
99.98 is just below the symbolic round number of 100. It is the final support line for now.
USD/JPY Daily Chart
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.
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