The USDJPY pair continued gaining some positive traction through the Asian session on Friday. What can traders expect with today’s up-move? This 18 May USDJPY Technical Forecast gives more insights.
18 May, GKFX –The pair, so far, has held with modest gains for the fifth consecutive session got an additional boost from weaker than expected Japanese National Core CPI, which eased more than expected to a yearly rate of 0.7% in April.
Softer Japanese Core CPI boost pair
Against the backdrop of recent US Dollar upsurge, supported by a continuous climb in the US Treasury bond yields, softer Japanese core CPI print reaffirmed that the BoJ will stick to its ultra-loose monetary policy stance and remained supportive of the pair’s strong bid tone.
The Japanese Yen was further weighed down by improving investors’ appetite for riskier assets, as depicted by a positive trading sentiment around equity markets, which tends to dent demand for traditional safe-haven assets/currencies.
With today’s up-move, the pair has now risen nearly 180-pips since the beginning of this week and hence, a modest pull-back, led by some profit-taking, now looks a distinct possibility.
Traders would now take cues from speeches by influential FOMC members – Cleveland Fed President Loretta Mester, due in a short while from now, and Fed Governor Lael Brainard, scheduled later during the early NA session.
18 May USDJPY Technical Forecast
Momentum beyond the 111.00 handle is likely to get extended towards the 111.25-30 supply zone, above which the pair seems all set to extend its bullish trajectory in the near-term. On the flip side, any meaningful retracement is likely to find support near the 110.40 area and is followed by the very important 200-day SMA support near the 110.15 region.
This article 18 May USDJPY Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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