USD/JPY Forecast

USD/JPY Bullish Above 113.40

The USD/JPY  is trapped in a range mode particularly because Trump’s protectionist policies that can give some USD strength vs JPY but can cause weakness against EM currencies. USD is gaining its power mostly due to US monetary policy which suggest 2-3 more rate hikes. Conversely Japan yield curves are relatively low.

Technically we can spot a POC zone within 113.45-70 zone ( L4, ATR low, Inner trend line, ascending trend line). Retracement in the zone could spike the pair up. Target is 115.60 followed by 115.80. However a clear 4h close above 115.85 is needed for a further continuation up towards 116.65 and 117.85. However if the pair closes below 113.50, we might see a stop grabber and additional momentum towards 112.00 zone.

USD/JPY Chart
USD/JPY Chart

Daily technical analysis is written by Nenad Kerkez, a senior analyst at Admiral Markets

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Nenad Kerkez

Nenad Kerkez is an analyst and trader who has been in the market since 2008 and works closely with Admiral Markets as their Senior Lecturer and Market Analyst. Nenad covers over 25 currencies on an intraday basis and has a Masters in economics. He also developed CAMMACD TM, a proprietary trading and analysis strategy wit ever powerful pre fact setups that you can read every day. Nenad is also a valuable presenter on various FX EXPO shows, where he always presents new and interesting ways how to trade price action and protect your own investments. Further, he is the co-founder and head of Elite Currensea Trading, an educational website for currency traders.