USD/JPY Forecast September 14-18 – Will BoJ wake up sleepy yen?

0
Dollar/yen was range-bound throughout the week and ended the week unchanged. The highlight this week will be the Bank of Japan rate decision.
.

USD/JPY fundamental mover

In Japan, consumer indicators headed lower. Household Spending declined by 7.6%, marking a 10th straight decline. Average Cash Earnings slipped 1.3%, after a decline of 1.7% beforehand. Japan’s economy contracted by 7.9% in Q2, revised upwards from -8.1%. In the manufacturing sector, the Business Survey Manufacturing Index improved to 0.1, up sharply from -52.3 beforehand.

In the US, unemployment claims were worse than expected. The indicator was almost unchanged at 884 thousand, higher than the estimate of 838 thousand. Inflation remained weak, as consumer inflation slowed in August. Both the headline and core readings reading dropped from 0.6% to 0.4%. Still, both releases beat their estimates. The Producer Price Index, another important inflation gauge, also slowed in August.

See all the main events in the Forex Weekly Outlook

Key news updates for USD/JPY

Updates:

USD/JPY Technical Analysis

108.88 has provided resistance since early June.

108.02 is next.

107.29 (mentioned last week) is protecting the 107 level.

106.44 remains a weak resistance line.

105.45 is the first support level.

104.50 has provided support since late July.

103.52 is the final support line for now.

.

USD/JPY Daily Chart

USD/JPY Sentiment

I am bullish on USD/JPY

With the US economy showing signs of recovery, sentiment towards the US dollar has increased. This could translate into gains for USD/JPY this week.

Follow us on Sticher or iTunes

Further reading:

Safe Trading!

Get the 5 most predictable currency pairs

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.

Comments are closed.