The USDJPY is trading into 112.33, sticking close to yesterday’s bottoms after a sharp detour from the regular bullish action, slipping to a low near the 112.00 major level. Where might the pair end the week? This 20 July USDJPY Fundamental Forecast comes handy.
20 July, GKFX – The US Dollar slid on Thursday after US President Donald Trump talked down the American currency, lashing out at the US Federal Reserve over the pace and scale of the central bank’s interest rate hikes, with Trump conveying that he desires a Greenback with a lower value.
USDJPY Fundamental Highlights
Markets sold off the USD on reaction, but managed to stage a late-day bounce as traders adapted to the POTUS’ statements.
Japan saw national inflation figures late on Thursday, which struggled to hit the mark on market forecasts, with y/y national CPI into June ticking lower into 0.7%, holding steady at the previous figure and missing the expected 0.8% showing, but markets remained steady, if on the soft side, through Friday’s following Asian market session.
Japan’s All Industry Activity Index also came in at 0.1% early Friday, clearing the expected 0.0% but falling short of the previous period’s 1.0%, and USDJPY remains sluggish heading into the week’s end.
20 July USDJPY Fundamental Forecast
Technical indicators for the Dollar-Yen pairing have turned sharply downside, but charts remain relatively bullish in comparison, and according to FXStreet’s own Valeria Bednarik:
“the pair settled around 112.40 after nearing the 112.00 level, with an increased downward potential, now that the pair is back below the 112.60 level.
In the 4 hours chart, technical indicators head lower within bearish territory with strong downward slopes, while the price remains far above bullish moving averages, which means that the longer term bullish trend is not yet at risk, although further downward corrective movements can’t be disregarded.”
Support levels: 112.05 111.80 111.40
Resistance levels: 112.60 113.00 113.4
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